John B Sanfilippo & Son Inc (JBSS)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 12.56 | 13.74 | 13.73 | 12.94 | 15.45 | |
| DSO | days | 29.07 | 26.56 | 26.58 | 28.20 | 23.62 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.56
= 29.07
Based on the data provided, the Days Sales Outstanding (DSO) for John B Sanfilippo & Son Inc has shown a slight increase over the past three years, with the DSO increasing from 23.62 days in 2020 to 29.07 days in 2024. This indicates that it is taking the company longer to collect its accounts receivable compared to previous years.
Although there was a decrease in DSO in 2023 and 2022 compared to 2021, the upward trend in 2024 suggests that the company may be facing challenges in efficiently converting its sales into cash. A high DSO could indicate potential issues with the company's credit policy, collection processes, or the creditworthiness of its customers.
It is essential for John B Sanfilippo & Son Inc to closely monitor and manage its DSO to ensure timely collection of receivables, improve cash flow, and maintain a healthy working capital position. Actions such as tightening credit terms, improving collection processes, and conducting credit checks on customers may help in reducing DSO and enhancing the company's overall financial health.
Peer comparison
Jun 30, 2024