Lancaster Colony Corporation (LANC)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 19.59 | 15.85 | 12.37 | 14.98 | 15.40 | |
| DSO | days | 18.63 | 23.02 | 29.50 | 24.36 | 23.70 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 19.59
= 18.63
The days sales outstanding (DSO) metric for Lancaster Colony Corporation has shown a decreasing trend over the past five years. In particular, the DSO has decreased from 29.50 days in June 30, 2022, to 18.63 days in June 30, 2024. This indicates that the company has been able to collect its accounts receivable more efficiently over time, which suggests a stronger cash conversion cycle and potentially improved liquidity. The decreasing trend in DSO may signify more effective credit management practices, a more stringent collection process, or possibly a shift in sales mix towards faster-paying customers. Overall, the declining DSO trend is a positive signal of potential operational efficiency and financial health at Lancaster Colony Corporation.
Peer comparison
Jun 30, 2024