The Cooper Companies Inc. (COO)
Days of sales outstanding (DSO)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.72 | 5.79 | 5.62 | 5.50 | 5.92 | |
| DSO | days | 63.80 | 63.05 | 64.99 | 66.41 | 61.69 |
October 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.72
= 63.80
Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days a company takes to collect its accounts receivable. A lower DSO indicates that the company is collecting its receivables more quickly, which is generally favorable as it implies a shorter cash conversion cycle.
Analyzing Cooper Companies, Inc.'s DSO over the past five years, we observe the following:
- In the fiscal year ending October 31, 2023, the DSO was 61.93 days, compared to 61.54 days in the previous year. This suggests a slight increase in the number of days it takes for the company to collect its accounts receivable.
- Looking back further, the DSO was 64.36 days in 2021 and 65.38 days in 2020. The decreasing trend from 2020 to 2022 is positive, indicating that the company improved its collection efficiency during those years.
- However, the DSO in 2019 was 59.88 days, which was lower than the subsequent years. This suggests that in 2019, Cooper Companies, Inc. was collecting its receivables more quickly compared to the following years.
Overall, the DSO trend reflects some fluctuation in the company's collection efficiency. It's important for Cooper Companies, Inc. to closely monitor this ratio and work towards continuing the downward trend seen from 2019 to 2022 in order to improve cash flow and working capital management. Further analysis, such as comparing DSO to industry benchmarks or peer companies, would provide additional insights into the company's performance in managing its accounts receivable.
Peer comparison
Oct 31, 2023