The Clorox Company (CLX)
Days of sales outstanding (DSO)
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.18 | 10.53 | 10.59 | 11.93 | 10.59 | 10.42 | 11.60 | 11.33 | 10.28 | 10.67 | 12.31 | 10.94 | 12.03 | 11.58 | 12.10 | 10.30 | 10.26 | 8.67 | 11.14 | 10.99 | |
| DSO | days | 35.85 | 34.65 | 34.47 | 30.59 | 34.47 | 35.04 | 31.47 | 32.21 | 35.52 | 34.22 | 29.64 | 33.35 | 30.34 | 31.51 | 30.18 | 35.43 | 35.58 | 42.12 | 32.77 | 33.23 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.18
= 35.85
The Days of Sales Outstanding (DSO) for The Clorox Company has varied over the past few quarters. DSO is a measure of how long it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally a positive sign.
Looking at the trend, we observe that DSO has fluctuated between 29.64 days to 35.85 days over the last few quarters. The DSO was relatively lower in the first quarter of 2022 and the last quarter of 2020, but it increased in the second quarter of 2022 and the fourth quarter of 2019.
It is crucial for The Clorox Company to monitor and manage its DSO effectively to ensure efficient cash flow management and timely collection of receivables. High DSO can indicate potential issues with credit policies, collection efforts, or customer creditworthiness. Conversely, a consistently low DSO may signify tight credit terms that could impact customer relationships.
Overall, The Clorox Company should aim to strike a balance in managing its DSO to optimize cash flow while maintaining strong customer relationships and sales growth.