Bath & Body Works Inc. (BBWI)
Days of sales outstanding (DSO)
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 31.78 | 36.42 | 47.08 | 50.02 | 32.30 | 30.74 | 40.82 | 55.07 | 38.78 | 45.86 | 54.10 | 104.93 | 43.59 | 39.10 | 42.38 | 39.64 | 32.85 | 34.57 | 36.38 | 48.32 | |
| DSO | days | 11.49 | 10.02 | 7.75 | 7.30 | 11.30 | 11.88 | 8.94 | 6.63 | 9.41 | 7.96 | 6.75 | 3.48 | 8.37 | 9.33 | 8.61 | 9.21 | 11.11 | 10.56 | 10.03 | 7.55 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 31.78
= 11.49
Days Sales Outstanding (DSO) is a key metric that indicates the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO is generally more favorable as it signifies that the company is collecting payments quickly and efficiently.
Analyzing the DSO trend for Bath & Body Works Inc. over the past few periods, we observe fluctuations in the metric. In the most recent period, DSO stood at 11.49 days, showing a slight increase compared to the previous period of 10.02 days. This increase may imply that the company took slightly longer to collect receivables in the most recent period.
Looking further back, we can see that DSO has shown variability over the last few quarters, ranging from a low of 3.48 days to a high of 11.88 days. The trend appears to be somewhat inconsistent, indicating potential fluctuations in the company's collection efficiency over time.
It would be beneficial for Bath & Body Works Inc. to focus on efficiently managing its receivables to maintain lower DSO levels, which can help improve cash flow and overall financial performance. Monitoring DSO regularly and implementing strategies to expedite collections can aid in enhancing liquidity and working capital management for the company.
Peer comparison
Feb 3, 2024