Central Garden & Pet Company (CENT)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.81 | 9.94 | 8.86 | 8.57 | 6.88 | |
| DSO | days | 37.20 | 36.71 | 41.19 | 42.58 | 53.05 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.81
= 37.20
To analyze Central Garden & Pet Company's Days of Sales Outstanding (DSO) based on the provided data, we observe a trend of declining DSO over the past five years. As of September 30, 2024, the company had a DSO of 37.20 days, slightly higher than the previous year's DSO of 36.71 days.
The decreasing trend in DSO indicates that Central Garden & Pet Company has been more efficient in collecting its accounts receivable over the years. A lower DSO implies that the company is collecting payments from customers more quickly, which can improve cash flow and liquidity.
Comparing the DSO to historical data, we see a significant improvement from 53.05 days in September 2020 to 37.20 days in September 2024. This suggests that the company has been effectively managing its accounts receivable and optimizing its working capital efficiency.
Overall, the decreasing trend in DSO for Central Garden & Pet Company reflects positively on its credit and collection policies, indicating improved efficiency in converting credit sales into cash.
Peer comparison
Sep 30, 2024