The Hain Celestial Group Inc (HAIN)

Days of sales outstanding (DSO)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Receivables turnover		9.37	10.91	11.14	11.36	12.01
DSO	days	38.97	33.47	32.78	32.12	30.38

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.37
= 38.97

The Days Sales Outstanding (DSO) ratio measures the average number of days a company takes to collect revenue after a sale has been made. A higher DSO indicates that the company is taking longer to collect its accounts receivable, potentially facing liquidity issues or experiencing difficulties in collecting payments from customers.

Upon analyzing the DSO trend of The Hain Celestial Group Inc over the past five years, we observe a consistent increase in the DSO ratio from 30.38 days in 2020 to 38.97 days in 2024. This upward trend indicates a potential deterioration in the company's accounts receivable management efficiency, as it is now taking longer for the company to convert its credit sales into cash.

The increase in DSO could be attributed to various factors such as changes in customer payment behavior, credit policy adjustments, or potential issues in collections processes. It is essential for the company to closely monitor and manage its accounts receivable to ensure timely collection of outstanding payments and maintain healthy cash flows.

In conclusion, the rising trend in The Hain Celestial Group Inc's Days Sales Outstanding ratio warrants further investigation and proactive measures to improve accounts receivable management and enhance overall liquidity position.