Central Garden & Pet Company (CENT)
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 | 8.94 | 9.94 | 6.63 | 5.77 | 10.04 | 8.86 | 6.69 | 5.50 | 9.87 | 8.57 | 6.44 | 4.71 | 8.59 | 6.88 | 5.09 | 5.28 | 8.96 | 7.94 | 5.93 | 5.03 | |
| DSO | days | 40.83 | 36.71 | 55.06 | 63.25 | 36.35 | 41.19 | 54.60 | 66.42 | 37.00 | 42.57 | 56.65 | 77.56 | 42.48 | 53.05 | 71.75 | 69.15 | 40.73 | 45.97 | 61.58 | 72.51 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.94
= 40.83
The Days Sales Outstanding (DSO) ratio for Central Garden & Pet Company has varied over the past few quarters. DSO represents the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates faster collection of accounts receivable, which is generally favorable.
Looking at the data, we observe that the DSO for Central Garden & Pet Company ranged from a low of 36.35 days to a high of 77.56 days over the past two years. The trend shows some fluctuations, with certain quarters experiencing higher DSO figures compared to others.
For instance, in March 2021, the DSO spiked to 77.56 days, indicating a prolonged collection period for receivables. However, it decreased significantly to 36.35 days by December 2022, reflecting an improved collection efficiency. The latest DSO figure as of December 31, 2023, stands at 40.83 days, suggesting that the company takes approximately 40.83 days on average to collect its sales.
Analyzing the DSO trend can provide insights into the company's credit policies, collection efforts, and overall liquidity management. Investors and creditors often monitor DSO to assess the effectiveness of a company's accounts receivable management and its ability to convert credit sales into cash efficiently.
Peer comparison
Dec 31, 2023