Best Buy Co. Inc (BBY)
Days of sales outstanding (DSO)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 46.27 | 40.58 | 49.67 | 44.54 | 37.98 | |
| DSO | days | 7.89 | 9.00 | 7.35 | 8.19 | 9.61 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 46.27
= 7.89
The Days of Sales Outstanding (DSO) ratio for Best Buy Co. Inc has shown fluctuations over the past five years, with levels ranging from 7.35 days to 9.61 days. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally favorable as it signifies efficient cash flow management.
In particular, in the most recent period, as of February 3, 2024, the DSO stands at 7.89 days, which is an improvement compared to the prior year when it was at 9.00 days. This decrease suggests the company's ability to convert its accounts receivable into cash has become more efficient, which could lead to improved liquidity and working capital management.
Analyzing the trend over the five-year period, it appears that Best Buy Co. Inc has been successful in managing its accounts receivable effectively, with DSO figures mostly in a reasonable range. However, it is essential for the company to continue monitoring and optimizing this ratio to ensure sustained financial health and efficiency in its operations.