The Chefs Warehouse Inc (CHEF)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.32 | 10.24 | 10.40 | 10.53 | 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 | |
| DSO | days | 35.36 | 35.63 | 35.09 | 34.67 | 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 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.32
= 35.36
The Days Sales Outstanding (DSO) ratio for The Chefs Warehouse Inc indicates the average number of days it takes for the company to collect payments from its customers. Over the period from March 31, 2020, to December 31, 2024, the DSO fluctuated within a range of approximately 27.73 days to 40.54 days.
From a trend perspective, the DSO initially decreased from 32.99 days on March 31, 2020, to 27.73 days on June 30, 2020, showing an improvement in the company's ability to collect receivables efficiently. However, the DSO increased in subsequent quarters, reaching 40.54 days on June 30, 2021, indicating a potential delay in collecting payments from customers.
Following this peak, there was a downward trend in DSO over the next few quarters, with fluctuations but generally staying below the peak level observed in June 2021. This downward trend suggests an improvement in the company's receivables management and efficiency in collecting payments from customers.
As of December 31, 2024, the DSO stood at 35.36 days, reflecting a moderate level compared to the historical data. Analyzing DSO over time can provide insights into the company's credit policies, collection practices, and overall efficiency in managing its accounts receivable. The company should aim to strike a balance between revenue growth and timely collection of receivables to maintain healthy cash flows and working capital management.
Peer comparison
Dec 31, 2024