Post Holdings Inc (POST)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 13.59 | 13.64 | 10.75 | 11.01 | 10.67 | |
| DSO | days | 26.85 | 26.75 | 33.95 | 33.15 | 34.21 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.59
= 26.85
Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is collecting its accounts receivable. A lower DSO indicates that the company is collecting payments from its customers more quickly, which is generally seen as a positive sign.
Analyzing the DSO trend for Post Holdings Inc over the past five years, we observe a gradual improvement in the company's collections efficiency. In September 2024, the DSO was recorded at 26.85 days, a slight increase from the previous year but still lower compared to the DSO figures in 2022 and 2021.
The decreasing trend in DSO from 2020 to 2024 signifies that Post Holdings Inc has been able to accelerate its accounts receivable collection process over the years. This may indicate effective credit management policies, improved invoicing and collection procedures, or enhanced customer relationships.
Overall, the downward trend in DSO for Post Holdings Inc suggests that the company has been successful in managing its accounts receivable efficiently, ultimately leading to quicker cash conversion and better liquidity. Continued monitoring of this metric will be essential to assess the company's ongoing effectiveness in managing its working capital and overall financial health.
Peer comparison
Sep 30, 2024