Best Buy Co. Inc (BBY)
Days of sales outstanding (DSO)
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 39.78 | 46.27 | 40.58 | 49.67 | 44.54 | |
| DSO | days | 9.18 | 7.89 | 9.00 | 7.35 | 8.19 |
February 1, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 39.78
= 9.18
Based on the provided data, Best Buy Co. Inc's days of sales outstanding (DSO) have fluctuated over the past five years. In January 2021, the DSO was 8.19 days, indicating that on average, it took the company approximately 8.19 days to collect its accounts receivable. By January 2022, the DSO had decreased to 7.35 days, suggesting an improvement in the company's ability to collect payments from customers more efficiently.
However, in January 2023, the DSO increased to 9.00 days, indicating a longer average collection period compared to the previous year. The DSO then decreased to 7.89 days by February 2024, showing a positive trend in accounts receivable management.
By February 2025, the DSO had increased again to 9.18 days, signaling a slower collection of accounts receivable compared to the prior year. Overall, Best Buy Co. Inc's DSO has shown some variability over the past five years, with fluctuations indicating changes in the company's efficiency in collecting payments from customers. Further analysis of the reasons behind these fluctuations could provide insights into Best Buy's accounts receivable management strategies.