Griffon Corporation (GFF)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.21 | 7.89 | 7.26 | 8.61 | 8.31 | 7.42 | 7.12 | 8.04 | 7.63 | 5.66 | 4.54 | 6.54 | 7.49 | 6.91 | 6.24 | 7.59 | 6.75 | 6.30 | 6.59 | 8.06 | |
| DSO | days | 44.43 | 46.26 | 50.26 | 42.40 | 43.92 | 49.18 | 51.29 | 45.38 | 47.82 | 64.48 | 80.48 | 55.82 | 48.74 | 52.81 | 58.46 | 48.09 | 54.04 | 57.94 | 55.38 | 45.29 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.21
= 44.43
Griffon Corporation's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue from its credit sales. Analyzing the DSO trend over the past few quarters, we observe fluctuations in the collection period:
- DSO increased from 45.29 days in Q4 2019 to 57.94 days in Q1 2020, indicating a longer collection period.
- There was a decrease in DSO to 54.04 days in Q2 2020, followed by a further drop to 48.09 days in Q3 2020, suggesting an improvement in the efficiency of accounts receivable collection.
- In Q4 2020, DSO increased slightly to 58.46 days, but decreased to 52.81 days in Q1 2021.
- However, DSO increased to 48.74 days in Q2 2021 and further to 55.82 days in Q3 2021, indicating a longer collection period.
- Q4 2021 saw a decrease in DSO to 80.48 days, which was a significant jump from the previous quarter, suggesting potential challenges in accounts receivable management.
- The trend continued in Q1 2022 with DSO dropping to 64.48 days, indicating an improvement in collections efficiency.
- Q2 2022 recorded a higher DSO at 47.82 days, followed by a significant increase to 45.38 days in Q3 2022.
- The trend continued to fluctuate with DSO increasing to 51.29 days in Q4 2022 and climbing to 49.18 days in Q1 2023.
- In Q2 2023, there was a decrease in DSO to 43.92 days, followed by a slight increase to 42.40 days in Q3 2023.
- Q4 2023 saw a drop in DSO to 50.26 days, followed by a further increase to 46.26 days in Q1 2024.
- The latest available data for Q1 2024 indicates a DSO of 44.43 days, which suggests a relatively shorter collection period compared to the previous quarter, signifying improved efficiency in accounts receivable management.
Overall, Griffon Corporation's DSO has shown fluctuations over the quarters, indicating variations in the company's effectiveness in managing accounts receivable collection. The recent decrease in DSO may imply improved collections efficiency, but continued monitoring of this metric is advisable to assess the company's financial health and operational effectiveness.