Carpenter Technology Corporation (CRS)

Days of sales outstanding (DSO)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Receivables turnover		4.90	4.70	4.66	4.64	7.40
DSO	days	74.51	77.72	78.25	78.72	49.30

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.90
= 74.51

Days of Sales Outstanding (DSO) is a financial ratio that measures the average number of days a company takes to collect payment after making a sale. A lower DSO indicates faster collections and better cash flow management.

Analyzing Carpenter Technology Corporation's DSO over the past five years, we observe a general trend of fluctuation. In 2020, the DSO was relatively low at 49.30 days, indicating efficient collection practices. However, there was a significant increase in DSO in subsequent years, with values of 78.72 days in 2021, 78.25 days in 2022, and 77.72 days in 2023, suggesting a deterioration in the company's collection efficiency.

The most recent DSO figure for June 30, 2024, stands at 74.51 days, showing a slight improvement compared to the prior year. While this indicates a potential enhancement in collection processes, it is essential for the company to continue monitoring and managing its accounts receivable effectively to maintain a healthy cash flow position.

Overall, Carpenter Technology Corporation's DSO trend suggests that the company may benefit from further efforts to streamline its accounts receivable management and ensure timely collection of sales proceeds.