Callaway Golf Company (MODG)
Days of sales outstanding (DSO)
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 11.03 | 6.38 | 4.95 | 4.53 | |
| DSO | days | 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 | 33.10 | 57.22 | 73.74 | 80.57 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 19.80
= 18.44
To analyze the days of sales outstanding (DSO) for Topgolf Callaway Brands Corp, we observe a fluctuating trend over the last eight quarters. DSO measures the average number of days a company takes to collect revenue after a sale is made. The Q4 2022 DSO was 20.52 days, indicating efficient collection of sales revenue. However, this figure increased steadily in subsequent quarters, reaching a peak of 43.00 days in Q1 2023, reflecting delayed collection of sales revenues.
The increasing trend in DSO from Q4 2022 to Q1 2023 suggests potential issues with the company's accounts receivable management. It may indicate challenges in collecting payments from customers promptly, impacting cash flow and liquidity. The DSO improvement in Q4 2023 to 26.94 days is positive, indicating a more efficient collection process during that period.
Overall, Topgolf Callaway Brands Corp should focus on maintaining or reducing DSO to enhance cash flow management and operational efficiency. Analyzing the reasons behind the fluctuations in DSO and implementing strategies to expedite the collection of outstanding receivables can help the company improve its financial performance.
Peer comparison
Dec 31, 2023