Callaway Golf Company (MODG)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 22.77 | 19.80 | 21.03 | 24.43 | 11.15 | |
| DSO | days | 16.03 | 18.44 | 17.36 | 14.94 | 32.74 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 22.77
= 16.03
The Days of Sales Outstanding (DSO) is a measure of how long it takes for Callaway Golf Company to collect its accounts receivable. A lower DSO indicates a quicker collection of receivables, which is generally favorable as it signifies better liquidity and efficiency in the company's operations.
From the data provided, we can observe a decreasing trend in Callaway Golf Company's DSO over the years. In December 31, 2020, the DSO was 32.74 days, which then dropped to 14.94 days by December 31, 2021. This significant decrease continued with DSO further decreasing to 17.36 days by December 31, 2022, 18.44 days by December 31, 2023, and finally to 16.03 days by December 31, 2024.
The declining trend in DSO suggests that Callaway Golf Company has been improving its accounts receivable management, collecting payments from customers more efficiently over the years. This could be attributed to tighter credit policies, improved collection processes, or better relationships with customers.
Overall, the decreasing DSO trend is a positive indicator for Callaway Golf Company as it indicates effective credit control and management of accounts receivable, leading to improved cash flow and potentially stronger financial performance.
Peer comparison
Dec 31, 2024