Catalent Inc (CTLT)

Days of sales outstanding (DSO)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Receivables turnover		4.76	4.25	4.57	3.95	3.69
DSO	days	76.73	85.79	79.89	92.39	98.87

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.76
= 76.73

Catalent Inc's Days Sales Outstanding (DSO) has shown a downward trend over the past five years, indicating an improvement in the company's ability to collect its accounts receivable. In Jun 30, 2024, the company's DSO stood at 76.73 days, which was lower compared to 85.79 days in 2023, 79.89 days in 2022, 92.39 days in 2021, and 98.87 days in 2020. This suggests that Catalent Inc has been more efficient in converting its accounts receivable into cash, potentially due to better credit policies or more effective collection methods. A lower DSO reflects that the company is collecting payments from its customers at a faster rate, which could positively impact its cash flow and liquidity position. It is important for Catalent Inc to continue monitoring and managing its DSO to ensure timely collection of outstanding payments and maintain a healthy working capital cycle.