Callaway Golf Company (MODG)
Days of sales outstanding (DSO)
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 22.45 | 13.47 | 10.05 | 9.40 | 19.80 | 13.16 | 9.98 | 8.55 | 21.03 | 13.42 | 9.46 | 8.08 | 24.66 | 10.74 | 7.31 | 5.39 | 11.23 | 6.07 | 6.22 | 5.65 | |
| DSO | days | 16.26 | 27.09 | 36.33 | 38.84 | 18.44 | 27.74 | 36.58 | 42.68 | 17.36 | 27.20 | 38.59 | 45.17 | 14.80 | 33.97 | 49.93 | 67.75 | 32.49 | 60.09 | 58.70 | 64.61 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 22.45
= 16.26
The days of sales outstanding (DSO) for Callaway Golf Company show fluctuations over the periods analysed. In general, DSO represents the average number of days it takes for a company to collect revenue after a sale is made.
From March 31, 2020, to December 31, 2024, the DSO for Callaway Golf Company ranged from a high of 67.75 days to a low of 14.80 days. The trend in DSO indicates some volatility, with periods of increase followed by periods of decrease.
Notably, DSO decreased significantly from December 31, 2021, to December 31, 2024, suggesting improved efficiency in collecting revenue. A lower DSO indicates that the company is collecting payments from customers more quickly, potentially improving cash flow and liquidity.
Overall, a lower DSO is typically favorable as it indicates a shorter time for the company to convert its accounts receivable into cash. However, it is essential to consider industry benchmarks and trends over time to assess the effectiveness of Callaway Golf Company's accounts receivable management.
Peer comparison
Dec 31, 2024