Designer Brands Inc (DBI)
Days of sales outstanding (DSO)
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 36.79 | 28.82 | 32.45 | 32.19 | 42.64 | 14.77 | 16.43 | 14.95 | 16.00 | 12.89 | 13.96 | 11.50 | 11.40 | 39.70 | 55.56 | 37.85 | 39.18 | 40.14 | 39.96 | 42.67 | |
| DSO | days | 9.92 | 12.67 | 11.25 | 11.34 | 8.56 | 24.72 | 22.22 | 24.41 | 22.82 | 28.31 | 26.15 | 31.73 | 32.02 | 9.19 | 6.57 | 9.64 | 9.32 | 9.09 | 9.13 | 8.55 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 36.79
= 9.92
To analyze Designer Brands Inc's days of sales outstanding (DSO) over the provided periods, we can observe fluctuations in the company's ability to collect accounts receivable in a timely manner.
The DSO for Designer Brands Inc ranged from a low of 6.57 days to a high of 32.02 days over the past few years. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable as it implies efficient credit management and cash flow generation.
In examining the trend, we observe that DSO fluctuated throughout the periods, with some variability in collection efficiency. For example, there was a notable spike in DSO to 32.02 days in Jan 2021, which might be a concerning signal of delayed payments or potentially relaxed credit policies. On the contrary, the DSO dropped to 6.57 days in Aug 2020, indicating a significant improvement in collections efficiency during that period.
Overall, it is essential for Designer Brands Inc to closely monitor its DSO trend, aiming to keep it at a reasonable level to optimize cash flow and liquidity. An increasing trend in DSO could suggest potential issues with credit management or customer payment delays that may need further investigation and corrective actions.
Peer comparison
Feb 3, 2024