Jack In The Box Inc (JACK)

Days of sales outstanding (DSO)

		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	Sep 30, 2019	Jul 7, 2019	Apr 14, 2019
Receivables turnover		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	21.00	15.72	12.43
DSO	days	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	17.38	23.22	29.37

January 21, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 26.13
= 13.97

To analyze Jack In The Box, Inc.'s Days Sales Outstanding (DSO) over the past eight quarters, we observe fluctuations in the collection period for accounts receivable. The DSO measures how efficiently the company is managing its accounts receivable by indicating the average number of days it takes to collect revenue after a sale is made.

In Q4 2022, the DSO spiked to 25.81 days, indicating a slower collection period compared to previous quarters. This could be a concern as it suggests potential issues with credit policies or collection procedures. However, in Q1 2023, the DSO decreased significantly to 12.60 days, reflecting a more efficient collection process.

Subsequently, the DSO increased in Q2 and Q3 2023 before decreasing again in Q4 2023. The increase in Q2 and Q3 2023 may indicate challenges in collecting payments promptly, while the drop in Q4 2023 suggests improvement in receivables management.

In Q1 2024, the DSO further decreased to 13.97 days, pointing towards continued efficiency in collecting receivables. Overall, Jack In The Box, Inc. appears to have made efforts to better manage its accounts receivable over the quarters, although occasional fluctuations in DSO require careful monitoring to ensure consistent improvement in cash flow and liquidity.