Dine Brands Global Inc (DIN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.50	7.58	7.47	5.65	6.65
DSO	days	56.19	48.16	48.86	64.55	54.89

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.50
= 56.19

Dine Brands Global Inc's Days Sales Outstanding (DSO) ratio measures how long it takes for the company to collect its accounts receivable. A lower DSO indicates faster collections, which is generally favorable as it reflects efficient management of receivables.

From the data provided, we observe fluctuations in Dine Brands Global Inc's DSO over the past five years. In 2023, the DSO stands at 56.19 days, showing an increase from the previous year's 48.16 days. This suggests a potential delay in collecting receivables compared to the prior year.

Comparing the DSO to previous years, the company experienced a notable decrease in DSO in 2022 (48.16 days) compared to 2021 (48.86 days), indicating an improvement in receivables collection efficiency. However, in 2020, the DSO was higher at 64.55 days, reflecting a slower collection process that year.

In 2019, the DSO was 54.89 days, showing a slight increase from 2018. Overall, Dine Brands Global Inc's DSO has shown variability over the years, indicating fluctuations in the company's receivables management efficiency. Further analysis and comparison with industry benchmarks could provide insights into the effectiveness of the company's credit and collection policies.