Campbell’s Co (CPB)

The analysis of Campbell’s Co Days of Sales Outstanding (DSO) over the reported period reveals notable fluctuations and trends. As of July 31, 2022, the DSO was approximately 23.35 days, indicating that the company took about this long to collect receivables post-sales. By October 30-31, 2022, the DSO increased to roughly 30.33 and 28.87 days, respectively, suggesting a temporary elongation in collection periods, which might reflect changes in credit policies, customer payment behaviors, or seasonal variances.

Subsequently, a decrease is observed, with DSO reducing to approximately 22.65 days by January 29, 2023, and further declining to around 21.53 days as of January 31, 2023. This decrease indicates an improvement in receivables collection efficiency during this period. The trend of shorter DSO continues into April 2023, reaching 19.72 days, signaling potentially enhanced collection processes or shifts in customer payment terms.

In the subsequent months, there is a slight upward movement, with DSO rising to about 20.84 days by July 30, 2023, and maintaining a marginally higher level, such as 21.82 days on July 31, 2023. This suggests a stabilization period after the earlier improvements.

However, a notable increase occurs by October 29-31, 2023, with DSO reaching approximately 29.83 and 28.89 days, respectively. This indicates a deterioration in collection efficiency, possibly due to payment delays, extended credit terms, or economic factors affecting customer solvency. The upward trend persists into early 2024, with DSO around 24.24 and 23.30 days, respectively, suggesting a partial recovery but still higher than the earlier low points in 2023.

Moving into 2024 and 2025, DSO fluctuates around the mid-24-day mark, with values such as 24.14, 24.51, and 24.24 days, which reflects relative stability at a somewhat elevated level compared to the most efficient collection periods. The latest data shows an increase to 31.52 days in October 2024, indicating a period of significant delays in receivables collection. In early 2025, DSO decreases again to approximately 25.84 days but remains above the best-practice levels observed earlier.

Overall, the data portrays a pattern of cyclical collection performance with periods of improvement and deterioration. The recent upward trend in DSO suggests potential challenges in receivables collection, possibly influenced by external economic conditions or internal credit policy adjustments. Continuous monitoring of these metrics is warranted to assess ongoing collection efficiency and cash flow implications.