Compass Minerals International Inc (CMP)

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	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
Receivables turnover		11.84	7.66	6.78	8.93	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
DSO	days	30.83	47.65	53.84	40.86	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

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.84
= 30.83

Days of Sales Outstanding (DSO) is a crucial metric that measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates a faster collection of accounts receivable, which is generally favorable as it implies more efficient working capital management.

Analyzing the DSO trend of Compass Minerals International Inc over the past few quarters, we observe fluctuations in the collection period. For the most recent quarter ending June 30, 2024, the DSO stands at 30.83 days, showing a significant improvement compared to the previous quarter. This suggests that the company has been able to collect payments from customers more quickly, which could indicate a tighter credit policy, efficient collection efforts, or a shift in sales mix towards cash sales.

Looking back further, we see some variability in the DSO figures, with peaks and troughs. The highest DSO was recorded in the quarter ending September 30, 2019, at 86.80 days, indicating a prolonged period to collect receivables during that period. On the other hand, the lowest DSO of 28.03 days was reported in the quarter ending June 30, 2021, reflecting a swift collection process during that period.

Overall, a consistent downward trend in DSO over the quarters would be indicative of improved accounts receivable management efficiency. Conversely, a rising trend in DSO could suggest challenges in collections or a shift in customer payment behavior that may warrant further investigation. It is essential for investors and stakeholders to monitor DSO along with other financial metrics to gain insights into the company's cash flow management and overall financial health.