Flowers Foods Inc (FLO)

Days of sales outstanding (DSO)

		Dec 31, 2023	Oct 7, 2023	Jul 15, 2023	Apr 22, 2023	Dec 31, 2022	Oct 8, 2022	Apr 23, 2022	Dec 31, 2021	Oct 9, 2021	Jul 17, 2021	Apr 24, 2021	Dec 31, 2020	Sep 30, 2020	Jul 11, 2020	Apr 18, 2020	Dec 31, 2019	Oct 5, 2019	Jul 13, 2019	Apr 20, 2019	Dec 31, 2018
Receivables turnover		14.73	13.38	11.39	13.87	13.33	—	13.20	13.61	—	—	14.55	14.52	—	—	—	—	—	—	—	—
DSO	days	24.78	27.29	32.05	26.31	27.37	—	27.64	26.82	—	—	25.08	25.14	—	—	—	—	—	—	—	—

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.73
= 24.78

The Days Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect revenue from its sales. A lower DSO indicates faster collection of accounts receivable, which can signify efficient management of credit sales and a strong cash flow position.

Based on the historical data provided for Flowers Foods Inc, the company has generally maintained a relatively stable DSO over the period analyzed. The trend shows fluctuations in the DSO metric, with the number of days ranging from 24.78 to 32.05 days.

In recent periods, the DSO has been around 24 to 27 days on average, indicating that Flowers Foods Inc has been efficient in collecting payments from customers. However, the DSO reached a peak of 32.05 days in July 2023, suggesting a slow-down in collections at that particular point in time.

Overall, a consistent monitoring of the DSO ratio can help Flowers Foods Inc assess its credit policies, collection efforts, and overall liquidity position. Keeping the DSO at a reasonable level would be beneficial for the company to ensure a healthy cash flow and efficient working capital management.