BJs Wholesale Club Holdings Inc (BJ)

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		84.81	86.87	96.68	89.52	80.40	74.22	88.90	81.97	95.53	81.11	92.92	78.28	89.34	79.38	84.72	71.41	63.92	70.63	80.90	72.56
DSO	days	4.30	4.20	3.78	4.08	4.54	4.92	4.11	4.45	3.82	4.50	3.93	4.66	4.09	4.60	4.31	5.11	5.71	5.17	4.51	5.03

February 3, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 84.81
= 4.30

The Days of Sales Outstanding (DSO) ratio is a measure of how long it takes a company to collect its accounts receivable. A lower DSO is generally preferable as it indicates a faster turnaround in collecting money owed by customers.

Based on the data provided for BJs Wholesale Club Holdings Inc, we observe fluctuations in the DSO over the past two years. The trend shows some variability with occasional spikes and dips, but the general pattern suggests that the company has been able to manage its accounts receivable efficiently.

In the most recent period, the DSO was 4.30 days, indicating that on average, BJs Wholesale Club Holdings Inc collects its accounts receivable in approximately 4.30 days. This is a relatively low DSO, reflecting an effective credit and collection process.

Over the past two years, the DSO has ranged from a low of 3.78 days to a high of 5.71 days. The lower DSO figures suggest that the company has been successful in minimizing the time taken to collect outstanding payments from customers. However, the occasional higher DSO numbers may indicate delays in collections during those periods.

Overall, the DSO trend for BJs Wholesale Club Holdings Inc shows a generally efficient accounts receivable management process, with variations that may require closer monitoring to ensure timely collection of receivables and maintain cash flow health.