BJs Wholesale Club Holdings Inc (BJ)
Days of sales outstanding (DSO)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 84.80 | 80.40 | 95.50 | 89.34 | 63.92 | |
| DSO | days | 4.30 | 4.54 | 3.82 | 4.09 | 5.71 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 84.80
= 4.30
The days of sales outstanding (DSO) ratio measures the average number of days it takes for a company to collect payment after making a sale. Lower DSO values typically indicate quicker collection of receivables and better liquidity management.
Analyzing BJs Wholesale Club Holdings Inc's DSO over the past five years, we observe fluctuations in the ratio:
- In fiscal year 2020, the company had a relatively higher DSO of 5.71 days, indicating a longer time to collect payments.
- In fiscal year 2022, the DSO decreased to 3.82 days, suggesting an improvement in the company's collections efficiency.
- By fiscal year 2023, the DSO increased slightly to 4.54 days, indicating a longer collection period compared to the previous year.
- However, in the most recent fiscal year 2024, BJs Wholesale Club Holdings Inc managed to further lower its DSO to 4.30 days, albeit marginally higher than the previous fiscal year.
Overall, the trend in BJs Wholesale Club Holdings Inc's DSO indicates fluctuation in the efficiency of its accounts receivable management over the years. Further analysis of the underlying reasons for these variations and comparison with industry benchmarks would provide deeper insights into the company's performance in this aspect.
Peer comparison
Feb 3, 2024