Embecta Corp (EMBC)

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
Receivables turnover		4.53	4.57	6.75	5.41	7.01	5.84	7.31	7.73	8.44
DSO	days	80.64	79.80	54.09	67.46	52.07	62.48	49.96	47.20	43.25

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.53
= 80.64

The Days of Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect revenue after making a sale. A lower DSO indicates faster collection of receivables and better liquidity management.

Analyzing the DSO trend of Embecta Corp over the past several quarters, we observe fluctuations in the collection period. In the most recent quarter, ending September 30, 2024, the DSO increased to 80.64 days compared to the previous quarter's 79.80 days. This uptick may suggest a slower collection of receivables or changes in the company's credit policies.

Looking back at the data, we note a peak DSO of 80.64 days, which indicates potential challenges in timely collection. However, it is important to consider industry norms and the company's specific circumstances when evaluating DSO levels.

Overall, a detailed analysis of the DSO trend in conjunction with other financial ratios and operational metrics can provide a comprehensive understanding of Embecta Corp's efficiency in managing its accounts receivable and overall financial health.