Crown Holdings Inc (CCK)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.27 | 6.71 | 6.85 | 5.89 | 7.41 | |
| DSO | days | 50.20 | 54.41 | 53.25 | 62.02 | 49.28 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.27
= 50.20
Days Sales Outstanding (DSO) is a key metric that indicates how efficiently Crown Holdings Inc is managing its accounts receivable. A lower DSO value suggests that the company is collecting payments from customers at a faster rate, which can be a positive sign of strong cash flow management.
Analyzing the DSO trend for Crown Holdings Inc over the years, we observe the following:
- As of December 31, 2020, the DSO stood at 49.28 days, indicating that the company was able to collect payments from customers in approximately 49.28 days on average.
- By December 31, 2021, the DSO increased to 62.02 days, suggesting a slower collection process compared to the previous year.
- However, by December 31, 2022, the DSO decreased to 53.25 days, showing an improvement in the collection period compared to the previous year.
- The DSO remained relatively stable in the following years, standing at 54.41 days as of December 31, 2023, and 50.20 days as of December 31, 2024.
Overall, the trend in DSO for Crown Holdings Inc shows some fluctuations over the years, with improvements in collection efficiency in some periods and slight deteriorations in others. It is essential for the company to monitor and manage its accounts receivable effectively to ensure a healthy cash flow position and sustained financial performance.
Peer comparison
Dec 31, 2024