Hawkins Inc (HWKN)
Days of sales outstanding (DSO)
| Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.39 | 8.54 | 8.11 | 7.31 | 8.03 | 8.18 | 7.49 | 6.79 | 7.23 | 7.41 | 6.83 | 6.05 | 6.31 | 6.95 | 7.44 | 6.98 | 6.59 | 7.28 | 7.30 | 7.72 | |
| DSO | days | 49.37 | 42.75 | 45.01 | 49.93 | 45.46 | 44.63 | 48.72 | 53.74 | 50.45 | 49.25 | 53.42 | 60.31 | 57.88 | 52.53 | 49.03 | 52.28 | 55.41 | 50.12 | 50.00 | 47.29 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.39
= 49.37
Hawkins Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment from its customers after making a sale. Looking at the historical DSO data provided, we can observe fluctuations in the collection period over different quarters.
From June 30, 2020, to March 31, 2021, the DSO increased from 47.29 days to 55.41 days, indicating a lengthening collection period. This could suggest potential issues with credit policies or difficulties in collecting receivables promptly.
However, the company managed to bring down the DSO to 49.03 days by September 30, 2021, showing improvement in collections efficiency. This trend continued, with the DSO further decreasing to 44.63 days by December 31, 2023, and 42.75 days by December 31, 2024.
The DSO experienced some fluctuations in between, such as increases in March 31, 2022, and June 30, 2022, followed by decreases in September 30, 2022, and March 31, 2023. Overall, the general trend indicates that Hawkins Inc has been effective in managing its accounts receivable and improving the collection efficiency over the years.
However, it is essential for the company to monitor DSO continuously to ensure timely collection of outstanding payments, maintain healthy cash flows, and assess the effectiveness of its credit and collection policies.
Peer comparison
Mar 31, 2025