Dick’s Sporting Goods Inc (DKS)
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 | 109.41 | 84.42 | 81.75 | 83.45 | 154.58 | 131.92 | 140.26 | 154.27 | 174.36 | 133.35 | 130.71 | 159.06 | 160.32 | 116.99 | 114.93 | 80.84 | 164.59 | 122.53 | 133.07 | 161.27 | |
| DSO | days | 3.34 | 4.32 | 4.46 | 4.37 | 2.36 | 2.77 | 2.60 | 2.37 | 2.09 | 2.74 | 2.79 | 2.29 | 2.28 | 3.12 | 3.18 | 4.52 | 2.22 | 2.98 | 2.74 | 2.26 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 109.41
= 3.34
The Days of Sales Outstanding (DSO) ratio measures how long it takes for a company to collect payment from its customers after making a sale. A lower DSO indicates that a company is collecting payments more quickly, which is generally seen as a positive sign of efficiency.
Analyzing the DSO trend for Dick’s Sporting Goods Inc over the provided periods, we observe fluctuations in the metric. In the most recent period, as of February 3, 2024, the DSO is at 3.34 days, indicating a relatively quick collection of receivables compared to previous periods. This may suggest an effective credit and collection policy in place.
Looking back at historical data, we can see that the DSO has shown variability over time, with some periods exhibiting lower DSO values than others. For example, in May 2020, the DSO was relatively high at 4.52 days, indicating a longer time taken to collect payments. Contrastingly, in August 2019, the DSO was lower at 2.74 days, reflecting a more prompt collection of receivables.
Overall, it is essential for Dick’s Sporting Goods Inc to consistently monitor and manage its DSO to ensure optimal cash flow management and efficient working capital utilization. By focusing on maintaining a lower DSO and streamlining collection processes, the company can enhance its liquidity position and overall financial health.
Peer comparison
Feb 3, 2024