Edgewell Personal Care Co (EPC)
Days of sales outstanding (DSO)
| 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 12.80 | 13.34 | 11.85 | 9.98 | 13.36 | 12.23 | 10.83 | 9.40 | 10.41 | 10.47 | 10.60 | 8.19 | 9.24 | 9.49 | 9.14 | 8.62 | 9.77 | 8.31 | 7.49 | 7.35 | |
| DSO | days | 28.51 | 27.36 | 30.79 | 36.56 | 27.32 | 29.83 | 33.70 | 38.82 | 35.07 | 34.87 | 34.42 | 44.58 | 39.52 | 38.47 | 39.95 | 42.37 | 37.37 | 43.93 | 48.73 | 49.64 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.80
= 28.51
Days of Sales Outstanding (DSO) is a key financial ratio that measures how long it takes a company to collect revenue after making a sale. A lower DSO indicates faster collections, while a higher DSO suggests slower collections.
Looking at the trend of DSO for Edgewell Personal Care Co from Q2 2022 to Q1 2024, we can observe that there has been a general improvement in the collection efficiency over time. The DSO has decreased from 42.08 days in Q2 2022 to 22.11 days in Q1 2024. This reduction indicates that the company has been able to collect its accounts receivable more quickly and efficiently.
The decrease in DSO can be attributed to various factors such as improved credit policies, more efficient billing and collection processes, better customer relationships, and effective inventory management. A lower DSO is generally positive as it means the company is converting its sales into cash more efficiently, which can improve liquidity and working capital management.
It is important for investors and analysts to monitor DSO as a high DSO may indicate potential problems with the company's accounts receivable management and cash flow. However, it is also essential to consider industry norms and company-specific factors when interpreting DSO to gain a comprehensive understanding of the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023