Calavo Growers Inc (CVGW)
Days of sales outstanding (DSO)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 14.20 | 18.62 | 12.63 | 14.74 | 17.42 | |
| DSO | days | 25.71 | 19.60 | 28.90 | 24.77 | 20.95 |
October 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.20
= 25.71
Based on the data provided, Calavo Growers, Inc's days of sales outstanding (DSO) has fluctuated over the past five years. In 2023, the DSO stands at 23.46 days, which is an increase from the previous year's 19.13 days. This denotes a lengthening of the average time it takes for the company to collect its accounts receivable.
Comparing the DSO to previous years, there was a significant improvement in 2022 where it decreased to 19.13 days from 31.25 days in 2021. However, in 2021, there was an increase from 25.59 days in 2020. In 2020, there was an improvement from 20.23 days in 2019, indicating that the company had been successful in collecting its receivables more efficiently.
The upward trend in 2023 suggests that the company may be facing challenges in collecting its receivables in a timely manner. This could potentially impact the company's cash flow and liquidity. It would be important for management to focus on improving the efficiency of receivables collection to ensure healthy working capital levels and cash flow management.