Guess? Inc. (GES)
Days of sales outstanding (DSO)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | 9.72 | — | — | 7.45 | — | 8.20 | — | 9.77 | — | 7.86 | — | 7.85 | — | 9.39 | — | — | |
| DSO | days | — | — | — | — | 37.54 | — | — | 49.00 | — | 44.52 | — | 37.35 | — | 46.41 | — | 46.52 | — | 38.87 | — | — |
January 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Days Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO value generally signifies more efficient accounts receivable management and quicker cash conversion.
Analyzing the DSO trend of Guess? Inc. from January 2022 to January 2025, we observe fluctuations in the collection efficiency over this period. The available data points show varying DSO values, indicating changes in the company's ability to collect revenues promptly.
From July 2022 to January 2023, there is a decreasing trend in DSO from 38.87 days to 37.35 days, suggesting that the company improved its collections efficiency during this period. However, the DSO increased to 44.52 days in July 2023, indicating a potential delay in receivables collection.
The DSO peaked at 49.00 days in October 2023, signaling a significant lag in collecting payments, which could potentially lead to cash flow challenges. Subsequently, in February 2024, the DSO decreased to 37.54 days, indicating a partial recovery in collections efficiency.
The lack of DSO data for several periods raises questions about the consistency of the company's accounts receivable management. A sustained high DSO level may affect liquidity and working capital management, while a consistently low DSO could signify aggressive credit policies that may lead to increased credit risk.
Overall, the fluctuating DSO trend of Guess? Inc. indicates varying levels of efficiency in collecting revenues from customers. It is important for the company to monitor and actively manage its DSO to ensure optimal cash flow and financial stability.