Central Garden & Pet Company A (CENTA)
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
Central Garden & Pet Company A's Days of Sales Outstanding (DSO) is a key indicator of how efficiently the company collects its accounts receivable. A lower DSO indicates faster collection of receivables and better liquidity management.
Analyzing the trend in DSO over the past few quarters, we can see fluctuations in the collection efficiency of Central Garden & Pet Company A. In the latest quarter, the DSO was 37.54 days, significantly lower than the previous quarter's 56.21 days. This suggests an improvement in the company's accounts receivable management, as it took fewer days to collect its sales revenue.
Looking back at historical data, we observe that DSO has been volatile, with periods of higher and lower values. The company experienced relatively higher DSO values in the first quarter of 2021 and the first quarter of 2020, indicating slower collection of receivables during those periods.
Overall, Central Garden & Pet Company A should continue monitoring its DSO closely to ensure efficient accounts receivable management and maintain a healthy cash flow position. Additionally, the company may consider implementing strategies to further improve its collections process and reduce DSO to enhance its working capital management.
Peer comparison
Sep 30, 2024