Hanesbrands Inc (HBI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.11 | 8.15 | 8.71 | — | 8.64 | 7.03 | 7.22 | 7.65 | 7.60 | 7.26 | 7.03 | 8.34 | 8.53 | 6.72 | 5.57 | 9.23 | 8.55 | 6.75 | 6.88 | 7.42 | |
| DSO | days | 36.12 | 44.76 | 41.93 | — | 42.24 | 51.93 | 50.54 | 47.74 | 48.02 | 50.31 | 51.95 | 43.74 | 42.81 | 54.35 | 65.48 | 39.54 | 42.71 | 54.03 | 53.02 | 49.20 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.11
= 36.12
Days Sales Outstanding (DSO) is a key metric that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates that the company is collecting revenue more quickly, which can be a positive sign of efficient cash flow management.
Analyzing the DSO trend of Hanesbrands Inc over the past few quarters, we observe some fluctuations. In the most recent quarter (Dec 31, 2023), the DSO stood at 36.12 days, indicating an improvement in the collection of accounts receivable compared to the previous quarter. This decrease in DSO suggests that the company may be more effective in collecting revenue from its customers.
Looking further back, the trend in DSO shows some variability, with peaks and troughs observed in different quarters, indicating potential challenges in collections and credit management in those periods. It is important for Hanesbrands Inc to track and manage its DSO effectively to ensure timely collection of receivables and optimize its cash flow.
Overall, while the recent decrease in DSO is a positive development for Hanesbrands Inc, the company should aim to maintain consistency in managing its accounts receivable to ensure efficient cash flow and financial stability.