Carpenter Technology Corporation (CRS)

Days of sales outstanding (DSO)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Receivables turnover		5.00	4.84	5.09	4.96	4.91	5.22	5.36	5.25	4.80	4.57	4.88	5.05	4.80	5.04	5.07	4.85	4.78	5.34	7.49	7.78
DSO	days	73.01	75.34	71.70	73.53	74.41	69.96	68.12	69.59	76.04	79.87	74.80	72.23	75.99	72.43	71.96	75.33	76.36	68.34	48.74	46.91

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.00
= 73.01

The analysis of Carpenter Technology Corporation's days of sales outstanding (DSO) over the specified period reveals notable fluctuations and trends. Starting from September 30, 2020, with a DSO of approximately 46.91 days, the metric exhibited a gradual increase, reaching around 68.34 days by March 31, 2021, and continuing upward to 76.36 days on June 30, 2021. This upward trend persisted through the remainder of 2021, with DSO averaging over 71 days, indicating a lengthening of the collection period.

In 2022, the DSO remained relatively elevated, fluctuating between approximately 72.23 days and 75.99 days, with slight variations but maintaining a high level of receivables turnover time. The data suggest that the company experienced extended customer payment cycles during this period, which could be indicative of changes in credit policies, customer payment behaviors, or product demand cycles.

A notable shift occurred toward the end of 2022 and into early 2023, where DSO edged upward, reaching a peak of approximately 79.87 days on March 31, 2023. This peak denotes the longest collection period within the analyzed timeframe, possibly reflecting increased credit extension, delayed payments, or other operational factors affecting receivables.

Subsequently, the DSO showed signs of decline, with figures such as 69.59 days on September 30, 2023, and 68.12 days on December 31, 2023, indicating a moderation in the average collection period. This relaxation could be associated with internal efforts to accelerate receivables or external market conditions improving.

Looking into the first half of 2024, the DSO experienced minor fluctuations, averaging around 70 to 75 days. Notably, the June 30, 2024, DSO rose slightly to 74.41 days, before decreasing again in September 2024 to approximately 73.53 days. The subsequent quarters into 2025 show a continued range around 73 to 75 days, suggesting a stabilization at a relatively elevated level compared to the 2020 baseline.

In summary, Carpenter Technology Corporation's DSO experienced a significant increase from late 2020 through 2022, indicating extended receivables collection periods during that timeframe. The peak in early 2023 suggests operational or market factors impacting receivables management. Since then, a gradual improvement in DSO has been observed, although levels remain higher than the pre-2021 period. This pattern highlights the importance of ongoing receivables management strategies to optimize cash flow and reduce collection periods amidst changing market conditions.