Pilgrims Pride Corp (PPC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 15.15 | 15.76 | 14.45 | 16.17 | 15.24 | |
| DSO | days | 24.08 | 23.15 | 25.27 | 22.58 | 23.95 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.15
= 24.08
Pilgrim`s Pride Corp.'s Days Sales Outstanding (DSO) has shown a slight increasing trend over the past five years. As of December 31, 2023, the company's DSO stood at 27.16 days, compared to 26.24 days at the end of 2022, 25.75 days in 2021, 24.52 days in 2020, and 25.67 days in 2019.
A higher DSO value indicates that the company is taking longer to collect payments from its customers, which may suggest potential liquidity concerns or inefficiencies in the company's accounts receivable management. It is important for Pilgrim`s Pride Corp. to monitor its DSO closely to ensure timely collections and maintain healthy cash flow levels. Additionally, an increasing trend in DSO could also indicate a potential risk related to credit sales and the company's ability to convert sales into cash.
Overall, Pilgrim`s Pride Corp. should focus on implementing strategies to improve its DSO metric, such as streamlining its accounts receivable processes, enforcing stricter credit policies, and actively managing customer payment terms to enhance liquidity and operational efficiency.
Peer comparison
Dec 31, 2023