Post Holdings Inc (POST)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 13.64 | 10.75 | 11.01 | 10.67 | 12.76 | |
| DSO | days | 26.75 | 33.95 | 33.15 | 34.21 | 28.60 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.64
= 26.75
To evaluate the days of sales outstanding (DSO) for Post Holdings Inc, we can observe a decreasing trend over the past five years. In 2023, the DSO decreased to 26.75 days from 33.95 days in 2022, indicating a more efficient collection of receivables. This signifies that the company is converting its sales into cash more quickly, which could positively impact cash flow and working capital management.
The reduction in DSO from 2022 to 2023 demonstrates improved efficiency in collecting receivables, which could potentially be attributed to better credit control or enhanced customer payment terms. Overall, a lower DSO suggests a favorable sign of liquidity and operational effectiveness for Post Holdings Inc.
Peer comparison
Sep 30, 2023