Energizer Holdings Inc (ENR)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.10 | 5.15 | 6.35 | 8.18 | 7.15 | |
| DSO | days | 59.80 | 70.91 | 57.50 | 44.62 | 51.06 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.10
= 59.80
To analyze Energizer Holdings Inc's Days Sales Outstanding (DSO) over the past five years, we can observe a fluctuating trend in the efficiency of its accounts receivable collection process. The DSO metric reflects the average number of days it takes for the company to collect payment from its customers after making a sale.
In 2024, Energizer's DSO stood at 59.80 days, showing an improvement from the previous year. This suggests that the company has been able to collect its accounts receivable more quickly, potentially indicating effective credit management or stronger customer payment terms.
Comparing to 2023, where the DSO was higher at 70.91 days, the decrease in 2024 indicates a positive trend in receivables management. However, the DSO remains higher than the levels seen in 2021 and 2022, signaling potential room for further improvement in collections efficiency.
The DSO in 2021 and 2022 was relatively lower at 44.62 days and 57.50 days, respectively, indicating a tighter control over accounts receivable collections during those periods. However, the increase in 2023 and 2024 suggests a potential impact from changes in customer payment behaviors or internal credit policies.
Overall, the fluctuation in Energizer's DSO over the past five years highlights the importance of monitoring receivables management practices to ensure timely collection of outstanding payments and maintain healthy cash flow levels. The company may benefit from continuously evaluating and optimizing its credit and collection procedures to sustain efficient working capital management.
Peer comparison
Sep 30, 2024