The Marzetti Company (MZTI)
Days of sales outstanding (DSO)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 19.92 | 19.59 | 15.85 | 12.37 | 14.99 | |
| DSO | days | 18.32 | 18.63 | 23.02 | 29.50 | 24.36 |
June 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 19.92
= 18.32
The analysis of The Marzetti Company’s days of sales outstanding (DSO) over the specified fiscal years reveals notable dynamics in the company’s accounts receivable management. As of June 30, 2021, the DSO stood at approximately 24.36 days, indicating that, on average, it took the company just over 24 days to collect receivables. This figure increased to approximately 29.50 days by June 30, 2022, suggesting a slowdown in receivables collection or potentially more lenient credit terms during that period.
Subsequently, a significant improvement is observed in FY 2023, with the DSO decreasing to roughly 23.02 days, approaching the level seen in FY 2021. The downward trend continued into FY 2024, with the DSO dropping further to approximately 18.63 days, reflecting enhanced efficiency in receivables collection or tighter credit policies. This trend persisted into FY 2025, with DSO approximating 18.32 days, indicating a sustained or slightly improved collection period.
Overall, the chronological movement of DSO demonstrates a pattern of initial increase followed by a consistent decrease, culminating in a shorter receivables collection cycle in the most recent fiscal year. This progression suggests targeted efforts in accounts receivable management, potentially leading to improved cash flow and liquidity. The stabilization and reduction of DSO in the recent years indicate a more efficient collection process and could be reflective of strengthened credit policies or increased customer payment discipline.
Peer comparison
Jun 30, 2025