Valvoline Inc (VVV)
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 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 19.20 | 16.11 | 13.92 | 17.74 | 17.72 | 19.32 | 32.24 | 44.13 | 45.94 | 5.14 | 5.03 | 4.99 | 37.38 | 5.71 | 5.63 | 5.58 | 5.44 | 5.89 | 6.90 | 6.18 | |
| DSO | days | 19.01 | 22.65 | 26.22 | 20.57 | 20.59 | 18.90 | 11.32 | 8.27 | 7.95 | 71.02 | 72.58 | 73.10 | 9.76 | 63.92 | 64.84 | 65.40 | 67.14 | 62.01 | 52.92 | 59.09 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 19.20
= 19.01
Days Sales Outstanding (DSO) measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates faster collection of receivables and a more efficient accounts receivable management.
Analyzing Valvoline Inc's DSO over the past few quarters, we observe fluctuating trends. In the latest quarter, ending September 30, 2024, the DSO was 19.01 days, showing an improvement from the previous quarter's 22.65 days. This decrease in DSO suggests that Valvoline Inc has been able to collect its accounts receivables more quickly in the recent period.
Looking further back, there was a notable spike in DSO in the first quarter of 2022, reaching 71.02 days, and remained elevated in the following two quarters. This increase indicates a potential issue with collecting receivables efficiently during that period. However, the company managed to bring the DSO back down in subsequent quarters, showing an ability to address and improve the collection process.
Overall, the trend in Valvoline Inc's DSO appears to be improving over the recent quarters, indicating effective management of accounts receivable and liquidity. It is important for the company to continue monitoring and optimizing its collection processes to maintain a healthy DSO and ensure efficient cash flow management.
Peer comparison
Sep 30, 2024