Cencora Inc. (COR)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 12.49 | 12.81 | 11.64 | 13.25 | 14.50 | |
| DSO | days | 29.22 | 28.49 | 31.37 | 27.55 | 25.18 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.49
= 29.22
Based on the provided data, Cencora Inc.'s days of sales outstanding (DSO) have exhibited a slight fluctuation over the past four years. As of September 30, 2023, the DSO stands at 29.22 days, showing a marginal increase from the previous year's 28.49 days. Comparing this to the DSO of 31.37 days in 2021 and 36.67 days in 2020, it is evident that the company has improved its efficiency in collecting receivables from sales within a shorter timeframe.
The decreasing trend in DSO reflects a positive sign of effective credit management and efficient accounts receivable collection processes, which may contribute to improved cash flows and working capital management. However, it is important for Cencora Inc. to closely monitor and analyze the reasons behind these fluctuations in DSO to sustain and optimize its receivables management strategies.
Overall, the analysis of Cencora Inc.'s DSO indicates a positive trend, suggesting enhanced efficiency in converting credit sales into cash, but continued vigilance and proactive measures are recommended to maintain this positive trajectory.
Peer comparison
Sep 30, 2023