Edgewell Personal Care Co (EPC)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 13.73 | 13.34 | 12.23 | 10.47 | 9.49 | |
| DSO | days | 26.58 | 27.36 | 29.83 | 34.87 | 38.47 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.73
= 26.58
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 a faster collection of receivables, which is generally positive as it implies efficient working capital management.
Analyzing Edgewell Personal Care Co's DSO over the past five years, we observe a decreasing trend from 38.47 days in 2020 to 26.58 days in 2024. This downward trend indicates that the company has been improving its efficiency in collecting receivables, which is a positive sign of effective credit and collection management.
The decreasing DSO could signify various factors, such as improved credit policies, more efficient billing and collection processes, or a shift in customer payment behavior. This improvement in DSO suggests that Edgewell Personal Care Co is becoming more effective in converting its sales into cash, potentially enhancing its liquidity and cash flow position.
Overall, the declining trend in DSO for Edgewell Personal Care Co reflects a positive development in its working capital management, indicating a more streamlined and efficient process of collecting receivables over the years.
Peer comparison
Sep 30, 2024