Crown Holdings Inc (CCK)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.71 | 6.85 | 5.89 | 7.41 | 7.63 | |
| DSO | days | 54.41 | 53.25 | 62.02 | 49.28 | 47.81 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.71
= 54.41
To analyze Crown Holdings, Inc.'s Days Sales Outstanding (DSO) over the past five years, we can observe the following trends:
- In 2019, the DSO was at 47.81 days, indicating that, on average, it took the company 47.81 days to collect outstanding sales. This was a relatively low DSO compared to the subsequent years.
- In 2020, the DSO increased to 56.22 days, signaling a deterioration in the efficiency of collecting sales payments compared to the previous year.
- In 2021, the DSO further increased to 60.51 days, suggesting an elongation in the collection period. This rise in DSO could indicate potential issues with credit policies or difficulties in collecting receivables promptly.
- However, in 2022, there was a slight improvement in DSO to 51.97 days, showing a positive trend in the efficiency of collecting sales compared to the prior year.
- In 2023, the DSO increased marginally to 52.24 days, which is still lower than the levels seen in 2021 but slightly higher than the previous year. This indicates that the company may be facing challenges in collecting sales receivables efficiently.
Overall, the fluctuation in Crown Holdings, Inc.'s DSO over the five-year period highlights the importance of closely monitoring the company's accounts receivable management practices and the effectiveness of its credit and collection policies to ensure timely cash inflows and optimal working capital management.
Peer comparison
Dec 31, 2023