Costco Wholesale Corp (COST)

Days of sales outstanding (DSO)

		Sep 1, 2024	May 12, 2024	Feb 18, 2024	Nov 26, 2023	Sep 3, 2023	May 7, 2023	Feb 12, 2023	Nov 20, 2022	Aug 28, 2022	May 8, 2022	Feb 13, 2022	Nov 21, 2021	Aug 29, 2021	May 9, 2021	Feb 14, 2021	Nov 22, 2020	Aug 30, 2020	May 10, 2020	Feb 16, 2020	Nov 24, 2019
Receivables turnover		93.51	98.22	89.54	96.64	106.04	94.10	86.36	99.93	101.27	109.26	94.18	105.12	108.67	117.01	92.36	105.06	107.59	106.75	79.65	90.40
DSO	days	3.90	3.72	4.08	3.78	3.44	3.88	4.23	3.65	3.60	3.34	3.88	3.47	3.36	3.12	3.95	3.47	3.39	3.42	4.58	4.04

September 1, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 93.51
= 3.90

Days of Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect revenue after a sale has been made. Analyzing Costco Wholesale Corp's DSO over multiple periods provides insights into its efficiency in collecting payments from customers.

The trend in Costco's DSO over the past several quarters shows relatively stable performance, fluctuating between 3.12 days and 4.23 days. Lower DSO values indicate faster collection of receivables, which is generally favorable as it signifies effective credit management and liquidity.

The lowest DSO of 3.12 days in May 9, 2021, suggests that Costco was exceptionally efficient in collecting revenue during that period. On the other hand, the highest DSO of 4.58 days in Nov 24, 2019, may indicate a slight delay in collecting payments, which could be due to various factors such as changes in customer payment behavior or seasonal variations.

Overall, Costco's DSO levels demonstrate a consistent and efficient approach to managing accounts receivable, reflecting positively on its cash flow management and operational efficiency. Further monitoring of DSO trends will be crucial to assess any changes in the company's collection practices and financial health.