Dine Brands Global Inc (DIN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 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		6.50	9.71	9.53	9.59	7.58	10.40	10.08	9.81	7.47	9.37	8.16	6.39	5.65	5.90	6.11	10.94	6.65	9.81	8.84	8.49
DSO	days	56.19	37.58	38.30	38.07	48.16	35.10	36.20	37.20	48.86	38.97	44.72	57.10	64.55	61.84	59.72	33.36	54.89	37.21	41.28	43.00

December 31, 2023 calculation

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

The Days of Sales Outstanding (DSO) ratio for Dine Brands Global Inc has displayed some variability over the last eight quarters. In Q4 2023, the DSO was 56.19 days, showing an increase from the previous quarter's 37.58 days. This significant rise suggests that the company is taking longer to collect its accounts receivable compared to the prior quarter.

Comparing Q4 2023 DSO to the same quarter in the previous year, which was 48.16 days, indicates a worsening trend in collecting receivables in the current period. Similarly, the DSO in Q4 2023 has exceeded the average DSO for the entire year, pointing towards a potential issue in managing receivables efficiently during this quarter.

Analyzing further, there seems to be a general upward trend in DSO in the recent quarters, although there were fluctuations. While a fluctuation in DSO is normal for many businesses, a sustained increase may indicate liquidity issues or challenges in collecting outstanding payments promptly.

It is essential for Dine Brands Global Inc to closely monitor and manage its accounts receivable collection process to ensure that outstanding payments are collected promptly, thereby improving cash flow and overall liquidity position. Tracking DSO trends over time can provide valuable insights into the company's financial health and effectiveness in managing its working capital.