Cabot Corporation (CBT)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.66 | 5.17 | 5.29 | 6.25 | 6.30 | |
| DSO | days | 64.53 | 70.62 | 69.06 | 58.37 | 57.97 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.66
= 64.53
To analyze Cabot Corp.'s Days of Sales Outstanding (DSO) over the past five years, we can see that the DSO has fluctuated. The DSO measures the average number of days it takes for a company to collect revenue after a sale is made.
In 2023, the DSO was 64.53 days, which represents a decrease from the previous year's 70.62 days. This suggests that in 2023, Cabot Corp. was able to collect its accounts receivable more efficiently compared to the prior year.
Comparing 2023 to 2021, the DSO decreased from 69.06 days to 64.53 days, indicating a positive trend in the company's collections process. However, it is important to note that the DSO increased compared to 2020 and 2019.
Overall, the trend in DSO for Cabot Corp. shows variability, with improvements in some years and increases in others. This indicates that the company's efficiency in collecting outstanding sales may fluctuate over time and may be impacted by factors such as customer payment behavior, credit policies, and economic conditions.
Peer comparison
Sep 30, 2023