Prestige Brand Holdings Inc (PBH)

Days of sales outstanding (DSO)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Receivables turnover		6.37	6.75	7.80	8.23	6.40
DSO	days	57.34	54.06	46.79	44.37	57.05

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.37
= 57.34

To analyze Prestige Brand Holdings Inc's Days Sales Outstanding (DSO) trend, we observe an increase in DSO from 44.37 days in FY 2021 to 57.34 days in FY 2024. This indicates that, on average, it takes the company longer to collect its accounts receivable.

The DSO was relatively stable between FY 2020 and FY 2021, then increased notably in FY 2022 and continued to rise in FY 2023 and FY 2024. A rising DSO could suggest issues with the company's credit policies, collection efficiency, or customer payment behaviors. It may also indicate potential liquidity concerns if the company is having difficulty converting sales into cash promptly.

Investors and stakeholders should closely monitor this trend, as a consistently increasing DSO might impact the company's cash flow and working capital management. Management may need to reassess their credit terms, collection processes, or customer relationships to improve DSO and maintain healthy cash flow levels.