Calavo Growers Inc (CVGW)
Days of sales outstanding (DSO)
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 24.10 | 14.19 | 12.13 | 14.45 | 17.23 | 18.63 | 14.02 | 10.41 | 11.37 | 12.56 | 11.76 | 10.46 | 12.38 | 14.74 | 13.98 | 14.15 | 14.68 | 17.42 | 13.42 | 13.46 | |
| DSO | days | 15.14 | 25.72 | 30.10 | 25.26 | 21.19 | 19.59 | 26.04 | 35.07 | 32.10 | 29.07 | 31.03 | 34.90 | 29.47 | 24.76 | 26.11 | 25.80 | 24.86 | 20.95 | 27.20 | 27.12 |
January 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 24.10
= 15.14
The Days Sales Outstanding (DSO) ratio measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO value is generally preferable as it indicates that the company is collecting payments from customers more quickly.
Based on the data provided for Calavo Growers Inc, we observe fluctuations in the DSO over the past few quarters. The DSO for the most recent period, ending on January 31, 2024, was 15.14 days, reflecting a significant improvement compared to the prior quarter. This suggests that Calavo improved its collection efficiency during this period, possibly by implementing more effective credit and collection policies or enhancing customer relationships.
On the other hand, there have been instances of higher DSO values in some previous quarters, such as in July 2022 and April 2022. These higher values could indicate slower collection of receivables during those periods, which might be attributed to various factors like changes in customer payment behavior, economic conditions, or internal operational issues.
Overall, it is important for Calavo Growers Inc to consistently monitor and manage its DSO to ensure efficient cash flow management and timely collection of outstanding amounts. By analyzing trends in DSO over time and comparing with industry benchmarks, the company can identify areas for improvement in its receivables management processes.