Kraft Heinz Co (KHC)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		12.01	12.15	12.14	11.87	11.94
DSO	days	30.38	30.03	30.06	30.75	30.56

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.01
= 30.38

Days Sales Outstanding (DSO) is a measure used to evaluate how efficiently a company manages its accounts receivable. It indicates the average number of days it takes for a company to collect payments after making a sale.

For Kraft Heinz Co, the DSO for the years 2020 to 2024 remained relatively stable, ranging from 30.03 to 30.75 days. This consistency suggests that Kraft Heinz Co has been effective in collecting payments from its customers in a timely manner.

A consistent DSO level over the years indicates that Kraft Heinz Co has been successful in managing its accounts receivable efficiently. However, it is essential for the company to continuously monitor and strive to improve its DSO to ensure it maintains healthy cash flows and financial stability.

Overall, Kraft Heinz Co's DSO performance demonstrates a strong control over its accounts receivable process, potentially indicating effective credit policies and collections practices within the company.