Kellanova (K)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.37 | 7.29 | 9.52 | 8.96 | 8.62 | |
| DSO | days | 43.62 | 50.08 | 38.32 | 40.74 | 42.37 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.37
= 43.62
Analysis of Kellanova's Days Sales Outstanding (DSO) over the past five years shows fluctuations in the efficiency of collecting accounts receivable. The DSO decreased from 50.08 days in 2022 to 43.62 days in 2023, indicating an improvement in the collection process, potentially reflecting better credit management or more timely payments from customers.
Comparing the DSO to previous years, it is evident that 2021 had the lowest DSO at 38.32 days, suggesting that the company was particularly effective in collecting outstanding payments that year. However, the DSO increased in 2022, but the recent decline in 2023 indicates a return to a more efficient accounts receivable management.
Overall, fluctuations in DSO can reveal insights into the company's liquidity, operational efficiency, and customer payment behaviors. It is essential for Kellanova to continue monitoring and managing its DSO to ensure a healthy cash flow and financial stability.
Peer comparison
Dec 31, 2023