Sonoco Products Company (SON)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.63 | 8.58 | 7.57 | 8.12 | 7.88 | |
| DSO | days | 47.83 | 42.54 | 48.21 | 44.95 | 46.32 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.63
= 47.83
The days of sales outstanding (DSO) for Sonoco Products Co. have fluctuated over the past five years. In 2023, the DSO was 54.45 days, showing an increase from the previous year's figure of 48.44 days. This suggests that the company took longer to collect its accounts receivable in 2023 compared to 2022.
When comparing the DSO in 2023 to 2021 and 2020, it is seen that the DSO has improved from 55.60 days in 2021 and 53.14 days in 2020. This indicates that Sonoco Products Co. was able to collect its accounts receivable more efficiently in 2023.
However, the DSO in 2023 is slightly higher than the figure in 2019, which was 55.14 days. This may raise some concerns about the company's ability to collect outstanding receivables in a timely manner compared to the prior year.
Overall, the trend in Sonoco Products Co.'s DSO over the past five years shows some variability, with improvement in 2023 compared to the two preceding years, but with a slight deterioration compared to 2019. Further analysis and insight into the company's credit and collection policies may be needed to fully understand the reasons behind these fluctuations in DSO.
Peer comparison
Dec 31, 2023