Treehouse Foods Inc (THS)
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 | 20.00 | 22.50 | 22.59 | 23.11 | 22.28 | 20.84 | 14.44 | 12.41 | 23.13 | 10.81 | 11.77 | 13.11 | 10.53 | 16.07 | 16.31 | 14.71 | 15.85 | 15.17 | 16.49 | 14.70 | |
| DSO | days | 18.25 | 16.22 | 16.16 | 15.80 | 16.38 | 17.52 | 25.28 | 29.42 | 15.78 | 33.75 | 31.01 | 27.84 | 34.66 | 22.72 | 22.38 | 24.81 | 23.03 | 24.06 | 22.14 | 24.84 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 20.00
= 18.25
To analyze Treehouse Foods Inc's days of sales outstanding (DSO) over the past eight quarters, we can observe a fluctuating trend.
The DSO in Q4 2023 was 18.68 days, a slight decrease compared to the previous quarter. This indicates that the company collected its accounts receivable slightly faster in Q4 2023.
In Q3 2023, the DSO increased to 21.25 days, which may suggest a slower collection of accounts receivable compared to the previous quarter. This could potentially be a cause for concern as it indicates a delay in receiving payments from customers.
The DSO in Q2 and Q1 2023 were 20.91 days and 18.02 days, respectively, showing a decreasing trend leading up to Q4 2023. This could indicate an improvement in the company's accounts receivable management during this period.
Comparing the results to the prior year, we can see a substantial increase in DSO in Q2 2022 and Q3 2022, reaching 17.29 days and 21.87 days, respectively. However, there was a notable improvement in Q4 2022, with a DSO of 16.78 days, indicating a more efficient collection of accounts receivable towards the end of the year.
Overall, while there have been fluctuations in Treehouse Foods Inc's DSO over recent quarters, the company should focus on effectively managing its accounts receivable to ensure optimized cash flow and timely collection of payments from customers.
Peer comparison
Dec 31, 2023