Best Buy Co. Inc (BBY)
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 | 46.27 | 48.33 | 51.84 | 52.46 | 40.58 | 45.65 | 58.63 | 63.15 | 49.67 | 51.51 | 59.20 | 59.22 | 44.54 | 44.28 | 47.94 | 57.49 | 37.98 | 40.95 | 44.58 | 51.52 | |
| DSO | days | 7.89 | 7.55 | 7.04 | 6.96 | 9.00 | 8.00 | 6.23 | 5.78 | 7.35 | 7.09 | 6.17 | 6.16 | 8.19 | 8.24 | 7.61 | 6.35 | 9.61 | 8.91 | 8.19 | 7.09 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 46.27
= 7.89
Days Sales Outstanding (DSO) is a ratio that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally favorable as it signals efficient management of receivables.
Analyzing the trend of Best Buy Co. Inc's DSO over the past few quarters, we observe fluctuations in the metric. From Feb 3, 2024, to Oct 29, 2022, the DSO ranged between 5.78 days and 9.00 days. Notably, the DSO reached its highest point at 9.00 days on Jan 28, 2023, but decreased to 6.23 days on Jul 30, 2022, marking a significant improvement in receivables collection efficiency.
It is important to note that a lower DSO, such as the lowest recorded value of 5.78 days on Apr 30, 2022, suggests that Best Buy was able to collect its outstanding sales in a shorter time frame, possibly due to effective credit management or streamlined collection processes.
Overall, Best Buy Co. Inc's DSO has shown variability over the analyzed period, with some fluctuations indicating changes in the company's ability to collect revenue promptly. Monitoring this metric can provide insights into the effectiveness of the company's credit policies and receivables management.
See also:
Best Buy Co. Inc Average Receivable Collection Period (Quarterly Data)