Church & Dwight Company Inc (CHD)
Days of sales outstanding (DSO)
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.16 | 10.90 | 10.20 | 10.89 | 11.14 | 12.53 | 12.23 | 12.83 | 12.74 | 13.57 | 13.07 | 12.89 | 12.80 | 12.57 | 13.07 | 12.25 | 12.28 | 12.73 | 13.33 | 12.67 | |
| DSO | days | 35.91 | 33.48 | 35.77 | 33.51 | 32.77 | 29.13 | 29.84 | 28.45 | 28.65 | 26.91 | 27.93 | 28.31 | 28.52 | 29.03 | 27.93 | 29.81 | 29.73 | 28.68 | 27.38 | 28.81 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.16
= 35.91
Days Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes a company to collect revenue after a sale has been made. A lower DSO generally signifies that the company is collecting its accounts receivable more efficiently.
Analyzing the DSO trend of Church & Dwight Company Inc from March 31, 2020, to December 31, 2024, we observe the following:
- The DSO for Church & Dwight has fluctuated over the period, ranging from a low of 26.91 days on September 30, 2022, to a high of 35.91 days on December 31, 2024.
- In general, the trend in DSO has shown some volatility, with occasional increases followed by decreases in subsequent periods.
- The DSO on average has been relatively stable, with the company maintaining DSO levels in the high twenties to low thirties days range.
- An increase in DSO may indicate challenges in the company's accounts receivable management or delays in customer payments, while a decrease in DSO reflects more efficient collection efforts.
- Given the fluctuating nature of DSO, it is essential for Church & Dwight Company Inc to closely monitor and manage its accounts receivable processes to ensure timely collection of revenues.
Overall, while the DSO for Church & Dwight demonstrates some variability, it is crucial for the company to focus on maintaining efficient accounts receivable management practices to optimize cash flow and overall financial health.
Peer comparison
Dec 31, 2024