Greif Bros Corporation (GEF)
Days of sales outstanding (DSO)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.99 | 8.46 | 6.36 | 7.13 | 6.90 | |
| DSO | days | 45.67 | 43.17 | 57.42 | 51.20 | 52.89 |
October 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.99
= 45.67
To analyze the days of sales outstanding (DSO) for Greif Inc, we can observe a trend over the past five years. The DSO measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates that the company is collecting payments more quickly, which is generally viewed as favorable.
In 2023, the DSO increased to 46.12 days from 43.06 days in 2022. This uptick suggests that Greif Inc took longer to collect its sales revenue compared to the previous year. However, it is important to note that the DSO was still lower than in 2021 and 2020, which signifies an improvement in the efficiency of collecting receivables.
Looking further back, in 2021, the DSO was 58.43 days, notably higher than in 2020 and 2019. This indicates that the company took longer to collect sales revenue in 2021.
Overall, while there was a slight uptick in DSO in 2023, the company has generally shown an improvement in the efficiency of collecting outstanding sales over the past five years, when compared to previous periods. It is important for investors and stakeholders to closely monitor DSO as it provides insight into the company's liquidity and collections efficiency.