Floor & Decor Holdings Inc (FND)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 158.12 | 581.03 | 978.41 | — | 710.97 | |
| DSO | days | 2.31 | 0.63 | 0.37 | — | 0.51 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 158.12
= 2.31
Floor & Decor Holdings Inc's Days of Sales Outstanding (DSO) is a metric used to measure how long it takes for the company to collect its accounts receivable. A lower DSO indicates that the company is efficient in collecting payments from its customers.
Looking at the trend over the past few years, we can see that the DSO has fluctuated. In 2019, the DSO was 0.51 days, which decreased significantly to 0.37 days in 2021, indicating an improvement in the company's accounts receivable collection process. This improvement continued in 2022, with a further reduction to 0.63 days.
However, in 2023, the DSO increased to 2.31 days, suggesting a potential slowdown in the company's accounts receivable collection. This rise in DSO may indicate that Floor & Decor Holdings Inc is taking longer to collect payments from its customers, which could impact its cash flow and liquidity.
It is important for investors and stakeholders to closely monitor the DSO trend to assess the company's efficiency in managing its accounts receivable and maintaining a healthy cash flow position. Additionally, management should address any increase in DSO to ensure timely collection of receivables and optimal liquidity management.
Peer comparison
Dec 31, 2023