Grocery Outlet Holding Corp (GO)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 206.15 | 234.54 | 295.46 | 273.52 | 254.65 | |
| DSO | days | 1.77 | 1.56 | 1.24 | 1.33 | 1.43 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 206.15
= 1.77
The days of sales outstanding (DSO) for Grocery Outlet Holding Corp have exhibited a fluctuating trend over the past five years. The DSO has ranged from a low of 1.24 days in 2021 to a high of 1.77 days in 2023. This variability suggests that the company's accounts receivable management may have experienced some fluctuations in efficiency over the years, impacting the collection of sales revenue from customers.
Overall, the company has managed to maintain relatively low DSO levels, which indicates that it has been successful in promptly collecting payments from customers on credit sales. A lower DSO implies quicker conversion of accounts receivable into cash, which can enhance liquidity and working capital efficiency for the company.
However, the slight increase in DSO from 2022 to 2023 may indicate a potential slowdown in the collection of receivables, which could impact cash flows and working capital management. It would be important for Grocery Outlet Holding Corp to monitor and potentially improve its accounts receivable collection processes to ensure the continued efficiency of cash conversion from sales.
Peer comparison
Dec 31, 2023