Sonoco Products Company (SON)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.54 | 7.24 | 8.06 | — | 8.58 | — | — | — | 7.57 | — | — | — | — | — | — | — | — | — | — | — | |
| DSO | days | 48.39 | 50.44 | 45.26 | — | 42.54 | — | — | — | 48.22 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.54
= 48.39
To analyze Sonoco Products Co.'s days of sales outstanding (DSO) from Q1 2022 to Q4 2023, we observe fluctuations in the DSO over the eight quarters.
1. There is a gradual decrease in DSO from Q2 2022 to Q1 2023, indicating an improvement in the company's accounts receivable management efficiency.
2. However, from Q1 2023 to Q4 2023, there is a slight increase in DSO, which suggests a potential delay in collecting receivables in the most recent quarter.
3. Comparing Q4 2022 to Q4 2023, we notice a moderate increase in DSO. This may indicate a less efficient collection process in the most recent quarter compared to the same quarter the previous year.
4. The DSO figures in the last two quarters of 2023 are still lower than those in the first two quarters of 2022, reflecting overall improvements in accounts receivable management over the period.
In conclusion, while Sonoco Products Co. has shown improvement in managing its accounts receivable efficiency since Q2 2022, there was a slight increase in DSO in the latest quarter, potentially signaling challenges in collecting receivables promptly. Continued monitoring and evaluation of the company's receivables management practices are recommended to ensure sustainable improvements in working capital efficiency.
Peer comparison
Dec 31, 2023