CAVA Group, Inc. (CAVA)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		74.15	61.31	72.93	82.52	2,329.50
DSO	days	4.92	5.95	5.00	4.42	0.16

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 74.15
= 4.92

The Days of Sales Outstanding (DSO) for CAVA Group, Inc. has exhibited notable fluctuations over the period from 2020 to 2024. As of December 31, 2020, the DSO was remarkably low at 0.16 days, indicating that the company converted its receivables into cash extremely rapidly, with virtually no outstanding receivables. This suggests a highly efficient collection process or possibly unique accounting practices at that time.

By December 31, 2021, the DSO increased significantly to 4.42 days. This rise implies a shift towards slightly longer collection periods, though still reflecting a rapid receivables turnover relative to industry standards.

The upward trend continued into 2022, with the DSO reaching 5.00 days. The incremental increase indicates a modest extension in the average collection period, potentially reflecting changes in credit policies, customer payment behaviors, or operational adjustments.

In 2023, the DSO further rose to 5.95 days, approaching six days. This process indicates a continued elongation of receivables collection, which might suggest a strategic change in credit terms or a shift in customer payment practices, although the overall number remains relatively low and efficient.

By December 31, 2024, the DSO decreased slightly to 4.92 days. This slight reduction may point to an improvement in receivables management or an operational shift toward more prompt collections, bringing the company's receivables turnover closer to earlier levels seen in 2021.

Overall, the DSO for CAVA Group, Inc. over this period remains low and stable, reflecting efficient receivables management. The fluctuations, while notable, also suggest that the company's cash collection cycle stays within a short timeframe generally under a week, which is indicative of effective credit and collection practices. The small increase from 2021 to 2023 may signal minor operational adjustments, but the overall trend continues to demonstrate strong receivables turnover characteristics.