Church & Dwight Company Inc (CHD)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.14 | 12.74 | 12.80 | 12.28 | 12.23 | |
| DSO | days | 32.77 | 28.65 | 28.52 | 29.73 | 29.85 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.14
= 32.77
Church & Dwight Co., Inc.'s Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which can be a positive sign of efficiency in managing cash flows.
Looking at the DSO trend over the past five years, we can see that there has been some fluctuation. In 2023, the DSO increased to 32.77 days from 28.65 days in 2022. This suggests that the company took longer to collect payments from its customers in 2023 compared to the previous year.
Although the increase in DSO may indicate a slower collection period, it is essential to consider the company's industry, sales cycle, and credit policies to fully understand the implications of this change. A thorough analysis of the reasons behind the fluctuation in DSO would provide valuable insights into the company's credit and collection practices and overall financial health.
Peer comparison
Dec 31, 2023