Core & Main Inc (CNM)
Days of sales outstanding (DSO)
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | ||
|---|---|---|---|---|
| Receivables turnover | 6.80 | 6.90 | 5.55 | |
| DSO | days | 53.64 | 52.93 | 65.77 |
January 28, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.80
= 53.64
Based on the data provided, Core & Main Inc's Days Sales Outstanding (DSO) has shown some variability over the past three years. In January 2024, the DSO was 53.64 days, which is slightly higher than the previous year's DSO of 52.93 days in January 2023. However, it is significantly lower compared to January 2022 when the DSO was 65.77 days.
A lower DSO indicates that the company is able to collect its accounts receivable more quickly, which can be a positive signal of efficient cash flow management. The decrease in DSO from 2022 to 2023 suggests an improvement in the company's credit and collection policies or an increase in sales efficiency.
It is essential for Core & Main Inc to monitor its DSO closely to ensure timely collection of receivables and maintain healthy cash flow. Analyzing trends in DSO over time can provide valuable insights into the company's liquidity and operational efficiency.