Carpenter Technology Corporation (CRS)

Days of sales outstanding (DSO)

		Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		4.90	7.29	7.48	7.36	6.83	4.53	4.81	4.94	4.67	4.92	4.95	4.73	4.61	5.19	7.32	7.64	7.41	6.33	6.32	6.19
DSO	days	74.51	50.10	48.80	49.62	53.45	80.56	75.93	73.82	78.23	74.24	73.79	77.21	79.17	70.38	49.85	47.78	49.25	57.65	57.73	58.96

June 30, 2024 calculation

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

Days of Sales Outstanding (DSO) is a financial ratio that indicates the average number of days a company takes to collect revenue after a sale has been made. A lower DSO is generally seen as favorable, as it suggests that the company is able to convert its accounts receivable into cash more quickly.

Analyzing Carpenter Technology Corporation's DSO over the past few quarters, we observe fluctuations in the ratio. The DSO has ranged from as low as 47.78 days to as high as 80.56 days. The trend shows some variability, with periods of lower DSO followed by increases in the collection period.

The recent DSO of 50.10 days as of March 31, 2024, stands out as relatively lower compared to previous quarters, indicating an improvement in the company's efficiency in collecting payments from customers. However, the DSO figure can be affected by various factors such as industry trends, credit policies, customer payment behaviors, and economic conditions.

It is advisable for Carpenter Technology Corporation to closely monitor its DSO and strive to maintain it at optimal levels to ensure effective cash flow management and timely collection of accounts receivable. Further analysis and comparison with industry benchmarks could provide additional insights into the company's performance in managing its accounts receivable.