Kraft Heinz Co (KHC)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		12.15	12.14	11.87	11.94	11.20
DSO	days	30.03	30.06	30.75	30.56	32.58

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.15
= 30.03

The Days of Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates quicker collection of receivables, which is generally considered favorable as it implies efficient cash flow management.

Analyzing Kraft Heinz Co's DSO over the past five years, we observe a relatively stable trend with slight fluctuations. The DSO for the fiscal year ending December 31, 2023, stood at 30.03 days, which is slightly lower compared to the previous year's DSO of 30.06 days. This marginal decrease suggests that the company has been able to collect its accounts receivable slightly more efficiently in the most recent year.

Looking further back, the DSO for the past five years shows consistency in the range of 30 to 32.58 days. This indicates that Kraft Heinz has been successful in managing its accounts receivable collection process over the years, maintaining a level of efficiency in converting sales into cash.

Overall, although there have been minor fluctuations in the DSO ratio over the years, the company has demonstrated a relatively stable and efficient collection of receivables, which is a positive indicator of its cash flow management practices.