Central Garden & Pet Company A (CENTA)
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
Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally favorable as it indicates efficient accounts receivable management.
Analyzing Central Garden & Pet Company A's DSO over the past years, we observe fluctuations in the collection period. The DSO values range from 36.35 days to 77.56 days, indicating variability in the company's accounts receivable collection efficiency.
In recent quarters, there seems to be an improvement in DSO, with values decreasing from 63.25 days in March 2023 to 36.71 days in September 2023. This reduction in DSO signifies that Central Garden & Pet Company A has been collecting revenue more swiftly, which could result in improved cash flow and liquidity.
Despite the improvement in recent quarters, it is essential to note that the DSO has shown significant fluctuations over the past years, ranging from 36.35 days to 77.56 days. This variability may indicate inconsistencies in the company’s accounts receivable management practices or changes in customer payment behaviors.
Overall, Central Garden & Pet Company A should continue monitoring its DSO closely to ensure efficient accounts receivable management and timely collection of revenue, which could positively impact the company's financial health and cash flow position.
Peer comparison
Dec 31, 2023