HNI Corp (HNI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.85 | 10.81 | 9.10 | 9.37 | 8.15 | |
| DSO | days | 37.05 | 33.75 | 40.10 | 38.96 | 44.77 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.85
= 37.05
HNI Corp's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which is favorable as it enhances liquidity and working capital management.
Analyzing the trend in HNI Corp's DSO over the past five years, we observe fluctuations in the metric. The DSO decreased from 44.77 days in 2019 to 33.75 days in 2022, reflecting an improvement in the company's collection efficiency. However, in 2023, the DSO increased to 37.05 days, indicating a slight decrease in collection efficiency compared to the previous year.
Overall, although HNI Corp showed improvements in DSO in recent years, the slight increase in 2023 suggests a need for the company to focus on optimizing its accounts receivable management to maintain efficient cash flow operations. Monitoring and managing DSO effectively can help enhance the company's financial performance and stability.