Keurig Dr Pepper Inc (KDP)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Receivables turnover		8.88	9.01	9.41	9.83	9.42	10.08	9.71	8.50	7.94	8.27	8.98	9.59	10.00	9.34	9.91	9.75	9.64	9.68	9.92	9.66
DSO	days	41.12	40.51	38.78	37.13	38.76	36.20	37.58	42.95	45.95	44.12	40.64	38.08	36.51	39.09	36.84	37.44	37.88	37.70	36.79	37.77

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.88
= 41.12

Days of Sales Outstanding (DSO) is a financial ratio that measures the average number of days a company takes to collect payments after making a sale. For Keurig Dr Pepper Inc, the DSO has varied over the periods provided in the data.

From March 31, 2020, to December 31, 2024, the DSO ranged from a low of 36.20 days to a high of 45.95 days. This indicates that on average, it took Keurig Dr Pepper Inc between approximately 36 to 46 days to collect revenue from its customers.

Analyzing the trend, there was some fluctuation in the DSO over the periods. The DSO peaked at 45.95 days on December 31, 2022, but decreased to 36.20 days by September 30, 2023. This suggests that the efficiency in collecting receivables improved during this period. However, the DSO rose again to 41.12 days by December 31, 2024.

Overall, a lower DSO is favorable as it indicates faster cash collections, improved liquidity, and better working capital management. Conversely, a higher DSO may suggest potential issues with collections, credit policies, or customer payment behaviors. Keurig Dr Pepper Inc should monitor its DSO closely to ensure efficient cash flow and timely collections to support its operations and growth.