Procter & Gamble Company (PG)

Days of sales outstanding (DSO)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Receivables turnover		13.74	14.99	15.59	16.11	16.98
DSO	days	26.57	24.35	23.41	22.66	21.49

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.74
= 26.57

The Days of Sales Outstanding (DSO) for Procter & Gamble Company have shown an increasing trend over the past five years, from 21.49 days as of June 30, 2020, to 26.57 days as of June 30, 2024. This indicates that the company is taking longer to collect its accounts receivable over time.

A higher DSO can suggest potential liquidity issues and inefficiencies in managing receivables. It could also indicate relaxed credit policies, leading to slower collection of outstanding payments from customers.

It is important for Procter & Gamble Company to closely monitor and manage its DSO to ensure efficient cash flow management. They may need to implement strategies such as improving their credit control processes, incentivizing early payments, or conducting thorough credit checks on customers to reduce the DSO and enhance overall financial performance.