Vestis Corporation (VSTS)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 15.83 | 6.92 | 7.02 | 7.05 | — | — | — | |
| DSO | days | 23.06 | 52.73 | 52.02 | 51.78 | — | — | — |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.83
= 23.06
Days Sales Outstanding (DSO) is a measure of how long it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is collecting payments more quickly, while a higher DSO suggests that there may be issues with collecting receivables efficiently.
Analyzing the DSO trend for Vestis Corporation over the past quarters, we can see that there was a significant improvement in DSO from 52.73 days in June 2024 to 23.06 days in September 2024. This suggests that the company has been able to collect payments from customers more efficiently during this period.
Comparing the DSO of September 2024 to previous quarters, we can observe a positive trend of decreasing DSO, which indicates that Vestis Corporation is managing its accounts receivable more effectively. Lower DSO can also indicate that the company's credit policies are effective, leading to quicker receipt of payments.
However, it is worth noting that there are missing data points for DSO in the previous quarters of September 2023, June 2023, and March 2023. Without this data, it is challenging to draw a complete trend analysis over a more extended period. It would be beneficial to have this missing data to provide a more comprehensive assessment of Vestis Corporation's accounts receivable management over time.
Overall, based on the available data, the improvement in DSO from the previous quarter to the current one suggests that Vestis Corporation may be effectively managing its collections process, which can positively impact its cash flow and overall financial health.
Peer comparison
Sep 30, 2024