Hawkins Inc (HWKN)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.03 | 7.23 | 6.31 | 6.58 | 8.02 | |
| DSO | days | 45.46 | 50.45 | 57.88 | 55.51 | 45.53 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.03
= 45.46
Hawkins Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates faster collection of accounts receivable and better liquidity management.
From 2020 to 2024, Hawkins Inc's DSO has fluctuated within the range of 45.46 to 57.88 days. In 2024, the DSO decreased to 45.46 days, indicating an improvement in the company's accounts receivable collection efficiency compared to the previous years.
The declining trend in DSO from 2022 to 2024 suggests that Hawkins Inc has been managing its accounts receivable more effectively, possibly through stricter credit policies or more efficient collection processes. This improvement may lead to better cash flow management and reduced risk of bad debt losses for the company.
Overall, the decreasing trend in Hawkins Inc's DSO over the years reflects positive progress in managing its accounts receivable and indicates a potential enhancement in the company's working capital efficiency.
Peer comparison
Mar 31, 2024