Cencora Inc. (COR)
Days of sales outstanding (DSO)
| 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 | Sep 30, 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 | 12.57 | 12.49 | 12.21 | 12.68 | 12.92 | 12.81 | 12.60 | 12.59 | 12.76 | 11.64 | 11.38 | 13.57 | 12.80 | 13.25 | 14.17 | 12.49 | 14.49 | 14.50 | 14.78 | 14.33 | |
| DSO | days | 29.03 | 29.22 | 29.89 | 28.79 | 28.25 | 28.49 | 28.96 | 29.00 | 28.61 | 31.37 | 32.06 | 26.90 | 28.53 | 27.55 | 25.75 | 29.23 | 25.20 | 25.18 | 24.69 | 25.47 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.57
= 29.03
Days of Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes for a company to collect payment after making a sale. It indicates the effectiveness of a company's credit and collection policies in managing its accounts receivable.
Analyzing Cencora Inc.'s DSO over the past eight quarters, we observe a relatively stable trend, fluctuating within a narrow range of 28 to 29 days. This suggests that the company has been maintaining a consistent collection period for its receivables. However, it is essential to assess the DSO in relation to industry benchmarks and the company's historical performance to gain a deeper understanding of its efficiency in collecting payments from customers.
Stable DSO may reflect efficient credit management and effective collection processes, contributing to a healthy cash flow cycle. Conversely, a significant increase in DSO may indicate potential difficulties in collecting payments or a shift in customer payment behavior, which warrants further investigation.
To fully evaluate the implications of Cencora Inc.'s DSO, it is crucial to consider other financial metrics, such as liquidity and profitability ratios, and assess any correlations or anomalies in the company's financial performance. This comprehensive analysis will provide valuable insights into the effectiveness of Cencora Inc.'s accounts receivable management and its impact on the overall financial health of the company.
Peer comparison
Dec 31, 2023