Cabot Corporation (CBT)
Days of sales outstanding (DSO)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 6.30 | 5.50 | 6.07 | |
| DSO | days | 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 | 57.97 | 66.37 | 60.13 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.40
= 67.53
To analyze Cabot Corp.'s Days of Sales Outstanding (DSO) over the past eight quarters, we observe a fluctuating trend in the company's collection period. In Q1 2024, the DSO stood at 67.53 days, a slight increase compared to the previous quarter's 64.53 days in Q4 2023. The DSO has generally demonstrated a gradual decrease since Q3 2022, where it reached 77.74 days, indicating a positive trend in collection efficiency. However, it is notable that the DSO increased in Q1 2023 and Q4 2022 before the improving trend resumed.
Overall, the company appears to be making efforts to streamline its accounts receivable collection process, as evidenced by the decreasing trend in the DSO metric. Management should continue monitoring and managing DSO effectively to ensure timely collection of outstanding receivables and improve overall liquidity and cash flow position.
Peer comparison
Dec 31, 2023