Hasbro Inc (HAS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.86 | 5.17 | 4.28 | 3.93 | 3.35 | |
| DSO | days | 75.09 | 70.57 | 85.30 | 92.94 | 109.08 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.86
= 75.09
Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO value typically indicates that the company is able to collect its accounts receivable more quickly, which is a positive indicator of efficient cash flow management.
Analyzing the DSO trend for Hasbro, Inc. over the past five years, we observe a decreasing trend from 109.08 days in 2019 to 75.09 days in 2023. This downward trend indicates that Hasbro has been improving its collection of accounts receivable over the years, which could be a result of more effective credit policies, better customer relationships, or improved billing and collection processes.
The decreasing DSO trend suggests that Hasbro has become more efficient in managing its accounts receivable, leading to quicker cash inflows from sales. This improvement in DSO is a positive sign of the company's financial health and indicates stronger liquidity and working capital management.
Overall, the decreasing trend in Hasbro's DSO over the past five years reflects the company's efforts to streamline its accounts receivable process and optimize its cash flow position, which can ultimately support sustainable growth and financial stability.