Keurig Dr Pepper Inc (KDP)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.39	7.91	9.97	9.73	8.87
DSO	days	38.85	46.16	36.61	37.52	41.16

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.39
= 38.85

Keurig Dr Pepper Inc's Days of Sales Outstanding (DSO) measure indicates the average number of days it takes for the company to collect payments from its customers after making a sale. A lower DSO signifies more efficient collections, while a higher DSO could suggest potential liquidity or credit risks.

Over the past five years, Keurig Dr Pepper Inc's DSO has shown some fluctuation. In 2023, the DSO decreased to 37.43 days from 43.31 days in 2022, indicating an improvement in the company's ability to collect receivables. This could be a positive sign of enhanced efficiency in managing accounts receivable and collecting payments from customers.

Comparing to 2021 and 2020, the DSO in 2023 is slightly higher, suggesting a potential slight delay in collecting payments compared to those years. However, it is still lower than the DSO in 2019, indicating an overall improvement over the five-year period.

It is advisable for Keurig Dr Pepper Inc to continue monitoring and managing its DSO to ensure timely collection of receivables and maintain a healthy cash flow position. Additionally, the company may consider implementing strategies to further optimize its accounts receivable processes to enhance efficiency and financial performance.