Guess? Inc. (GES)
Days of sales outstanding (DSO)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.73 | 7.72 | 7.88 | 5.97 | 8.18 | |
| DSO | days | 41.79 | 47.26 | 46.32 | 61.10 | 44.61 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.73
= 41.79
Guess? Inc.'s Days of Sales Outstanding (DSO) has shown fluctuations over the past five years. The DSO decreased to 41.79 days as of February 3, 2024, from 47.26 days in January 28, 2023. This decline suggests that the company has been able to collect its accounts receivable more efficiently compared to the prior year.
In the preceding years, the DSO was 46.32 days as of January 29, 2022, 61.10 days as of January 30, 2021, and 44.61 days as of February 1, 2020. The increase to 61.10 days in 2021 indicates a challenge in collecting receivables promptly, potentially impacting the company's cash flow. However, the improvement to 41.79 days in 2024 is a positive sign, indicating better management of accounts receivable and potentially more effective credit policies or collection procedures being in place.
Overall, a lower DSO is preferable as it signifies that Guess? Inc. is collecting payments from customers more quickly, which can improve liquidity and working capital management. Monitoring DSO trends over time can provide insights into the company's efficiency in managing its accounts receivable and overall financial health.