Jack In The Box Inc (JACK)

Days of sales outstanding (DSO)

		Sep 30, 2024	Jul 7, 2024	Apr 14, 2024	Jan 21, 2024	Sep 30, 2023	Jul 9, 2023	Apr 16, 2023	Jan 22, 2023	Sep 30, 2022	Jul 10, 2022	Apr 17, 2022	Jan 23, 2022	Sep 30, 2021	Jun 30, 2021	Apr 11, 2021	Jan 17, 2021	Sep 30, 2020	Jul 5, 2020	Apr 12, 2020	Jan 19, 2020
Receivables turnover		18.80	18.49	15.80	26.13	16.98	20.81	17.84	28.96	14.14	17.12	23.16	20.82	15.39	16.41	12.61	19.24	13.03	11.19	14.58	18.05
DSO	days	19.41	19.74	23.10	13.97	21.50	17.54	20.46	12.60	25.81	21.32	15.76	17.53	23.72	22.24	28.95	18.97	28.02	32.62	25.03	20.22

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 18.80
= 19.41

The Days Sales Outstanding (DSO) ratio is a measure of the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO indicates that the company is collecting revenue more quickly, while a higher DSO suggests that the company is taking longer to collect its accounts receivable.

Analyzing the DSO trend for Jack In The Box Inc over the past few quarters, we observe fluctuations in the number of days it takes the company to collect its sales revenue. In the most recent quarter as of September 30, 2024, the DSO stood at 19.41 days, showing a slight decrease from the previous quarter's DSO of 19.74 days. This suggests that the company has been able to collect its accounts receivable slightly more efficiently.

Comparing the DSO to previous periods, the company exhibited a lower DSO of 13.97 days on January 21, 2024, indicating faster collection of sales at that point in time. Conversely, there has been higher DSO in certain quarters such as 32.62 days on January 19, 2020, and 28.95 days on April 11, 2021, which may indicate delays in collecting accounts receivable during those periods.

Overall, it is essential for Jack In The Box Inc to monitor and manage its DSO effectively to ensure timely collection of sales revenue and maintain healthy cash flow levels. fluctuations in the DSO ratio can provide insights into the company's financial health and efficiency in managing its accounts receivable.