BJs Restaurants Inc (BJRI)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		68.23	44.92	37.24	32.79	52.33
DSO	days	5.35	8.13	9.80	11.13	6.97

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 68.23
= 5.35

Based on the data provided, BJs Restaurants Inc's Days of Sales Outstanding (DSO) has shown a fluctuating trend over the past five years. In 2023, the DSO decreased to 5.35 days from 8.13 days in 2022. This signifies that the company is collecting its accounts receivable faster in 2023 compared to the previous year, which could indicate an improvement in the efficiency of their credit and collection policies.

Comparing to 2019 and 2020 where the DSO was 6.97 days and 11.13 days respectively, the current DSO level of 5.35 days in 2023 is significantly better. The decreasing trend in DSO over the years indicates that BJs Restaurants Inc has been managing its accounts receivable more effectively, potentially resulting in improved cash flows and liquidity position.

However, it's essential to note that while a lower DSO is generally positive, an excessively low DSO could also indicate a very stringent credit policy that might hinder sales growth. Therefore, BJs Restaurants Inc should continue to monitor and optimize its DSO to strike a balance between maximizing cash inflows and maintaining customer relationships.