Catalent Inc (CTLT)

Days of sales outstanding (DSO)

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Receivables turnover		5.82	4.76	4.73	4.86	5.09	4.25	4.29	5.16	4.85	4.57	5.05	5.15	5.03	3.95	7.07	7.27	7.74	6.25	4.11	4.01
DSO	days	62.73	76.73	77.24	75.08	71.74	85.79	85.18	70.67	75.22	79.89	72.33	70.92	72.62	92.39	51.62	50.18	47.18	58.37	88.78	91.07

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.82
= 62.73

Days Sales Outstanding (DSO) is a metric used to evaluate how efficiently a company is managing its accounts receivable. A lower DSO indicates that a company is collecting its accounts receivable more quickly, while a higher DSO suggests that there may be delays in collecting payments from customers.

Analyzing Catalent Inc's DSO over the past few quarters, we observe fluctuations in the metric. In the most recent quarter, ending September 30, 2024, the DSO stood at 62.73 days, which is a significant improvement from the previous quarter's 76.73 days. This indicates that Catalent Inc has been able to collect its accounts receivable more efficiently in the recent period.

Comparing the DSO to historical data, we can see that there have been periods of both higher and lower DSO values. For example, in the first quarter of 2021, the DSO was only 51.62 days, reflecting a strong performance in collecting receivables. Conversely, in the second quarter of 2020, the DSO peaked at 91.07 days, signaling potential challenges in collecting payments from customers during that period.

Overall, monitoring DSO trends can provide insights into Catalent Inc's cash flow management and credit policies. A consistent downward trend in DSO over time would generally be viewed positively, as it indicates improved efficiency in collecting accounts receivable. However, occasional fluctuations may be influenced by seasonality, payment terms, and other business factors, requiring a deeper analysis to understand the underlying reasons for the changes in DSO.