Cal-Maine Foods Inc (CALM)
Days of sales outstanding (DSO)
| Jun 1, 2024 | Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 14.46 | 9.72 | 13.50 | 18.62 | 16.85 | 12.24 | 8.31 | 9.64 | 8.19 | 8.63 | 9.38 | 10.33 | 10.65 | 11.15 | 12.27 | 16.74 | 13.74 | 11.68 | 10.31 | 16.10 | |
| DSO | days | 25.25 | 37.57 | 27.03 | 19.61 | 21.66 | 29.81 | 43.95 | 37.88 | 44.58 | 42.31 | 38.93 | 35.33 | 34.27 | 32.75 | 29.75 | 21.80 | 26.57 | 31.26 | 35.40 | 22.67 |
June 1, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.46
= 25.25
Days of Sales Outstanding (DSO) is a financial ratio that measures the average number of days a company takes to collect payment after making a sale. A lower DSO indicates that a company is more efficient in collecting its accounts receivable, whereas a higher DSO may suggest potential issues with collecting payments in a timely manner.
Analyzing the DSO trend of Cal-Maine Foods Inc over the past several quarters reveals fluctuations in the efficiency of its accounts receivable management. From Nov 30, 2019, to Jun 1, 2024, the DSO varied between 19.61 days and 44.58 days.
In the most recent quarter, Jun 1, 2024, the DSO stood at 25.25 days. This indicates an improvement compared to the previous quarter, Mar 2, 2024, where the DSO was 37.57 days. A lower DSO suggests that Cal-Maine Foods Inc has been able to collect payments more quickly, which could be a positive sign for its liquidity and cash flow management.
However, it is worth noting that the DSO has exhibited some volatility over the quarters, with fluctuations ranging from as low as 19.61 days to as high as 44.58 days. This inconsistency may indicate challenges in maintaining a stable and efficient accounts receivable collection process.
To further evaluate the significance of the DSO trend, it is recommended to compare it with industry benchmarks and peer companies to assess Cal-Maine Foods Inc's performance relative to its competitors. Additionally, a deeper analysis of the company's credit policies, customer base, and collection processes may provide insights into the driving factors behind the fluctuations in DSO.