Cabot Corporation (CBT)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.45 | 5.41 | 5.26 | 5.40 | 5.66 | 5.93 | 5.55 | 5.54 | 5.17 | 4.70 | 4.91 | 5.50 | 5.29 | 5.00 | 4.78 | 5.13 | 6.25 | 7.69 | 6.73 | 6.69 | |
| DSO | days | 66.99 | 67.50 | 69.45 | 67.53 | 64.53 | 61.58 | 65.73 | 65.85 | 70.62 | 77.74 | 74.39 | 66.35 | 69.06 | 73.02 | 76.30 | 71.11 | 58.37 | 47.49 | 54.24 | 54.59 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.45
= 66.99
Cabot Corporation's Days Sales Outstanding (DSO) measures the average number of days it takes the company to collect payment from its customers after making a sale. By analyzing the DSO trend over the past years, we can gain insights into the efficiency of Cabot Corporation's accounts receivable management.
From the data provided, we observe that Cabot Corporation's DSO has exhibited some fluctuations over the periods. The trend shows that DSO has been relatively stable in recent quarters, hovering around the mid to high 60s. There was a noticeable peak in DSO in the third quarter of 2022, but the metric has since trended downward.
A decreasing DSO generally indicates that the company is collecting payments more quickly, which can suggest efficient credit and collection policies. On the other hand, an increasing DSO may imply potential issues with collecting receivables promptly, leading to liquidity challenges.
Overall, Cabot Corporation's DSO trend suggests that the company has been managing its accounts receivable reasonably well, with some improvements in collections efficiency in recent quarters. Further monitoring of DSO and comparison to industry benchmarks can help assess the effectiveness of Cabot Corporation's credit and collection processes.
Peer comparison
Sep 30, 2024