Central Garden & Pet Company A (CENTA)
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
The days of sales outstanding (DSO) for Central Garden & Pet Company A have shown a decreasing trend over the past five years. In particular, DSO decreased from 53.05 days in 2020 to 37.20 days in 2024. This suggests that the company has been able to collect its accounts receivable more efficiently over the years.
A lower DSO indicates that the company is collecting its outstanding sales revenue faster, which could be a sign of effective credit management and collection practices. This improvement in DSO may also indicate stronger customer relationships and credit policies, leading to quicker receivables turnover.
Overall, the decreasing trend in DSO for Central Garden & Pet Company A is a positive indicator of its liquidity and efficiency in managing accounts receivable. However, it is essential to continue monitoring this ratio to ensure that the company maintains its strong position in collecting receivables promptly.
Peer comparison
Sep 30, 2024