Cardinal Health Inc (CAH)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 18.77 | 18.45 | 17.17 | 17.85 | 18.50 | |
| DSO | days | 19.45 | 19.78 | 21.25 | 20.45 | 19.72 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 18.77
= 19.45
Days Sales Outstanding (DSO) is a key ratio used to analyze Cardinal Health Inc's efficiency in collecting receivables from its customers. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable.
Over the past five years, Cardinal Health Inc's DSO has shown a fluctuating trend. In the most recent fiscal year ending on June 30, 2024, the DSO decreased to 19.45 days compared to 19.78 days in the previous year, indicating a slight improvement in the company's ability to collect receivables efficiently.
When comparing the current DSO to the data from earlier years, it is evident that Cardinal Health Inc's DSO has generally been well-managed, staying within a relatively narrow range of 19 to 21 days over the period. This stability suggests that the company has been consistent in its receivables management practices.
Overall, Cardinal Health Inc's DSO performance reflects a reasonable level of efficiency in collecting payments from customers, with the recent decrease indicating a potential enhancement in working capital management. However, continued monitoring of this ratio is advisable to ensure ongoing effectiveness in receivables collection.
Peer comparison
Jun 30, 2024