Catalent Inc (CTLT)

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		4.76	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	4.06
DSO	days	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	89.89

June 30, 2024 calculation

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

Days Sales Outstanding (DSO) is a key financial metric that measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is efficient in collecting its accounts receivable, while a higher DSO may suggest potential issues with the company's credit policies or the ability of customers to pay on time.

Analyzing the historical trend of Catalent Inc's DSO, we can observe fluctuations over the past several quarters. The DSO for the most recent quarter ending June 30, 2024, stands at 76.73 days, showing a slight decrease from the previous quarter. Despite the decrease, the company's DSO remains relatively stable in the mid-70s range.

Looking further back, we see that the DSO has ranged from as low as 47.18 days to as high as 92.39 days over the past few years. The lowest DSO of 47.18 days, reported in the quarter ending March 31, 2020, indicates strong efficiency in collecting receivables, while the highest DSO of 92.39 days in the quarter ending March 31, 2021, may raise concerns about potential delays in accounts receivable collections.

The variability in DSO figures suggests that Catalent Inc's accounts receivable management may be impacted by factors such as sales volume, credit terms, customer payment behavior, or the effectiveness of collection efforts. It is important for the company to continue monitoring and managing its DSO to ensure efficient cash flow and timely collection of outstanding receivables.