Hanesbrands Inc (HBI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 10.09 | 8.63 | 7.54 | 7.96 | 8.53 | |
| DSO | days | 36.17 | 42.29 | 48.38 | 45.85 | 42.78 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.09
= 36.17
Hanesbrands Inc's Days Sales Outstanding (DSO) has shown a decreasing trend over the past five years, indicating an improvement in the company's ability to collect accounts receivable efficiently. The DSO decreased from 42.78 days in 2019 to 36.17 days in 2023.
A lower DSO implies that the company is collecting payments from customers more quickly, which can be a positive sign of effective credit and collection management. This may indicate stronger cash flow and liquidity positions for Hanesbrands Inc.
It is worth noting that the decreasing trend in DSO may reflect improved customer credit policies, enhanced collection processes, or possibly a shift towards customers with better payment histories. Overall, the declining trend in DSO for Hanesbrands Inc suggests an improvement in the efficiency of its accounts receivable management.