Kraft Heinz Co (KHC)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		12.27	12.55	11.81	—	12.14	11.64	10.94	11.15	11.86	12.70	12.45	12.11	12.14	12.45	11.86	10.42	11.28	11.66	11.42	11.86
DSO	days	29.76	29.09	30.91	—	30.08	31.35	33.36	32.75	30.79	28.74	29.32	30.15	30.08	29.31	30.77	35.04	32.36	31.31	31.97	30.77

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.27
= 29.76

The Days Sales Outstanding (DSO) ratio for Kraft Heinz Co has fluctuated over the past few quarters. The ratio provides insight into the average number of days it takes for the company to collect revenue from its credit sales.

Looking at the data, we observe that the DSO ratio has generally ranged between 28 to 35 days. There was a slight increase in DSO from the third quarter of 2020 to the first quarter of 2021, reaching 35.04 days, which may indicate potential challenges in collecting outstanding payments during this period. However, the ratio improved in subsequent quarters and stabilized around 29 to 32 days in the recent periods, suggesting efficiency in the company's accounts receivable management.

The absence of DSO data for March 2023 indicates a possible data reporting issue or a change in reporting practices. This gap makes it challenging to assess the trend in the most recent quarter and its implications accurately.

Overall, monitoring the DSO trend is crucial for assessing the effectiveness of Kraft Heinz Co in managing its credit and collection processes. A lower DSO ratio typically signifies a faster turnaround in collecting payments, while a higher ratio might indicate potential liquidity or credit risk issues that warrant further investigation.