The Chefs Warehouse Inc (CHEF)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 23, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.15 | 9.46 | 9.25 | 10.05 | 9.83 | 11.28 | 10.50 | 11.55 | 10.02 | 9.60 | 9.00 | 10.07 | 11.37 | 12.34 | 13.16 | 11.06 | 9.02 | 9.39 | 9.59 | 9.65 | |
| DSO | days | 35.96 | 38.57 | 39.45 | 36.33 | 37.14 | 32.36 | 34.77 | 31.60 | 36.43 | 38.04 | 40.54 | 36.26 | 32.10 | 29.59 | 27.73 | 32.99 | 40.48 | 38.86 | 38.06 | 37.81 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.15
= 35.96
The Days of Sales Outstanding (DSO) is a key financial ratio that measures how long it takes for a company to collect its accounts receivable. A lower DSO indicates faster collections and stronger cash flow management.
Analyzing the trend of The Chefs Warehouse Inc's DSO over the past few quarters, we can see fluctuations in the number of days it takes the company to collect its receivables.
In the most recent quarter, the DSO was 35.96 days, showing a slight improvement compared to the previous quarter's 38.57 days. This suggests that the company may have improved its efficiency in collecting payments from customers during that period.
Looking back further, there has been some volatility in the DSO figures over the quarters. The DSO reached a recent peak of 40.54 days in the second quarter of 2021, but has since trended downwards to the current level.
Overall, it is important for The Chefs Warehouse Inc to continue monitoring and managing its DSO to ensure efficient collections and maintain healthy cash flows. Keeping the DSO at optimal levels can enhance liquidity and overall financial health of the company.
Peer comparison
Dec 31, 2023