Compass Minerals International Inc (CMP)

Days of sales outstanding (DSO)

		Sep 30, 2023	Sep 30, 2022	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Receivables turnover		2.18	7.18	5.11	4.11	4.61
DSO	days	167.65	50.85	71.37	88.71	79.15

September 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.18
= 167.65

Days of Sales Outstanding (DSO) is a measure that indicates the average number of days that a company takes to collect its accounts receivable. A lower DSO generally suggests that a company is more efficient in collecting payments from its customers.

Analyzing the DSO data of Compass Minerals International Inc, it is evident that there has been a consistent improvement in the collection period over the years. The DSO decreased from 76.15 days in 2018 to 39.24 days in 2023, indicating a significant enhancement in the company's accounts receivable management.

The reduction in DSO suggests that Compass Minerals International Inc has been successful in accelerating its collection of receivables, potentially enhancing its cash flow and overall financial performance. This trend reflects positively on the company's credit policies, customer relationships, and efficiency in managing its working capital.

The declining trend in DSO indicates that the company is operating more efficiently and effectively in terms of managing its accounts receivable, which can have a favorable impact on its liquidity and financial stability. This trend may also indicate an improvement in the company's credit management and a proactive approach towards working capital efficiency.