Central Garden & Pet Company (CENT)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 9.72 | 6.49 | 5.72 | 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 | |
| DSO | days | 37.54 | 56.21 | 63.80 | 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 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.72
= 37.54
Days Sales Outstanding (DSO) is a key metric used to evaluate the efficiency of Central Garden & Pet Company in collecting its accounts receivable. DSO measures the average number of days it takes for the company to collect payment after making a sale.
Analyzing the DSO trend over the past years, we observe fluctuations. In recent periods, there has been a decline in DSO from a peak of 77.56 days in March 2021 to a low of 36.35 days in December 2022. This indicates an improvement in the company's ability to collect receivables more quickly.
However, there are occasional spikes in DSO, such as the peak of 71.75 days in March 2020, which could suggest challenges in collecting receivables efficiently during certain periods. Overall, the downward trend in DSO is a positive sign of effective accounts receivable management at Central Garden & Pet Company.
Monitoring DSO regularly can help the company assess its credit and collection policies and identify areas for improvement to maintain a healthy cash flow and liquidity position.
Peer comparison
Sep 30, 2024