Cal-Maine Foods Inc (CALM)
Days of sales outstanding (DSO)
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 14.32 | 16.80 | 8.12 | 10.63 | 13.74 | |
| DSO | days | 25.49 | 21.72 | 44.94 | 34.35 | 26.57 |
June 1, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.32
= 25.49
The days sales outstanding (DSO) ratio for Cal-Maine Foods Inc has fluctuated over the past five years, indicating potential changes in the company's accounts receivable management. In particular:
- Jun 1, 2024: DSO of 25.49 days
- Jun 3, 2023: DSO of 21.72 days
- May 28, 2022: DSO of 44.94 days
- May 29, 2021: DSO of 34.35 days
- May 30, 2020: DSO of 26.57 days
The DSO ratio measures how long it takes for a company to collect its accounts receivable. A lower DSO is generally favorable as it indicates quicker collection of receivables, while a higher DSO could suggest inefficiencies or potential issues with collecting outstanding payments.
It's evident that the DSO has varied significantly over the years, which could be attributed to changes in the company's credit policies, customer payment behavior, industry conditions, or management of accounts receivable. It would be essential for Cal-Maine Foods Inc to closely monitor and analyze these fluctuations to ensure effective receivables management and optimize cash flow.