Embecta Corp (EMBC)

Days of sales outstanding (DSO)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022
Receivables turnover		4.53	6.99	8.46
DSO	days	80.52	52.22	43.13

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.53
= 80.52

The days of sales outstanding (DSO) for Embecta Corp have seen an increasing trend over the past three years. In Sep 30, 2022, the DSO was 43.13 days, indicating that on average, it took the company approximately 43 days to collect its accounts receivable. This dropped significantly to 52.22 days in Sep 30, 2023, suggesting an improvement in the efficiency of the company's accounts receivable management.

However, in the most recent period ending on Sep 30, 2024, the DSO increased to 80.52 days, signifying a lengthening of the time taken to collect receivables compared to the previous year. This rise in DSO may indicate potential difficulties in collecting payments from customers promptly, which could impact the company's cash flow and liquidity position. Further analysis and monitoring of the DSO trend will be important to assess the effectiveness of Embecta Corp's accounts receivable management strategies.