Pilgrims Pride Corp (PPC)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 17.82 | 15.15 | 15.76 | 14.45 | 16.17 | |
| DSO | days | 20.48 | 24.08 | 23.15 | 25.27 | 22.58 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 17.82
= 20.48
Based on the provided data, Pilgrims Pride Corp's Days of Sales Outstanding (DSO) has seen fluctuations over the years. In December 2020, the DSO stood at 22.58 days, indicating that, on average, it took the company 22.58 days to collect its accounts receivable.
By December 2021, the DSO had increased to 25.27 days, suggesting a longer period for collecting receivables, possibly indicating issues with receivables management or customer payment delays. However, in the following years, there was a slight improvement as the DSO decreased to 23.15 days in 2022 and 24.08 days in 2023.
Notably, by the end of December 2024, the DSO had significantly improved to 20.48 days. This reduction could imply enhanced efficiency in collecting receivables, potentially due to better credit policies or more effective collection procedures.
Overall, the trend in Pilgrims Pride Corp's DSO indicates some variability but with a recent improvement, showcasing the company's efforts to manage its accounts receivable efficiently. It is essential for the company to continue monitoring and analyzing its DSO to ensure optimal working capital management and cash flow operations.
Peer comparison
Dec 31, 2024