Hawkins Inc (HWKN)
Days of sales outstanding (DSO)
| 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 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.03 | 8.18 | 7.49 | 6.79 | 7.23 | — | — | — | 6.31 | 6.95 | 7.44 | 6.98 | 6.58 | 7.28 | 7.30 | 7.72 | 8.02 | 9.55 | 8.39 | 8.02 | |
| DSO | days | 45.46 | 44.63 | 48.72 | 53.74 | 50.45 | — | — | — | 57.88 | 52.53 | 49.03 | 52.28 | 55.51 | 50.12 | 50.00 | 47.29 | 45.53 | 38.24 | 43.51 | 45.49 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.03
= 45.46
The Days Sales Outstanding (DSO) ratio is a measure of how efficiently a company collects its accounts receivable. A lower DSO indicates quicker collection of receivables and better liquidity.
Looking at the DSO trend for Hawkins Inc from December 2019 to March 2024, we observe some fluctuations in the ratio. The DSO was 45.46 days as of March 31, 2024, which was slightly higher compared to the previous quarter. This suggests that the company took a slightly longer time to collect its receivables in the most recent period.
However, if we compare the DSO to the same quarter in the previous year, we see a slight improvement as the DSO was 50.45 days on March 31, 2023. This could indicate better efficiency in collecting receivables in the current period compared to the same period last year.
Looking at the broader trend, the DSO has shown some variability over the quarters, with occasional increases and decreases. The highest DSO was recorded at 57.88 days on March 31, 2022, and the lowest was at 38.24 days on March 31, 2020.
Overall, it is important for Hawkins Inc to monitor and manage its DSO effectively to ensure timely collection of receivables and maintain healthy cash flow levels. Efforts to streamline credit policies, improve collection processes, and work closely with customers on payment terms could help in optimizing the DSO ratio and enhance the company's financial performance.
Peer comparison
Mar 31, 2024