Compass Minerals International Inc (CMP)

Days of sales outstanding (DSO)

		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	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		7.66	6.78	8.92	12.34	7.41	6.02	7.18	10.50	6.91	6.22	13.02	—	6.56	7.23	8.70	6.50	4.21	6.60	7.89	6.88
DSO	days	47.65	53.84	40.92	29.58	49.25	60.59	50.85	34.76	52.78	58.69	28.03	—	55.67	50.46	41.95	56.19	86.80	55.29	46.24	53.09

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.66
= 47.65

Days of Sales Outstanding (DSO) is a key metric that measures how long it takes a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally seen as a positive sign of efficient cash flow management.

Analyzing the DSO trend for Compass Minerals International Inc from March 31, 2019 to March 31, 2024, we can observe fluctuations in the collection efficiency over time.

In the timeframe provided, DSO ranged from a low of 28.03 days on June 30, 2021, to a high of 86.80 days on December 31, 2019. Overall, the DSO appears to have shown some volatility with fluctuations in collection efficiency.

It is important to note that DSO should be compared to industry benchmarks and historical data for the company to assess its effectiveness. Additionally, a decreasing trend in DSO over time indicates improvements in credit and collection policies, whereas an increasing trend may suggest difficulties in collecting receivables promptly.

In conclusion, further analysis of the factors influencing DSO, such as credit policies, customer payment behavior, and economic conditions, would provide a more comprehensive understanding of Compass Minerals International Inc's accounts receivable management.