WK Kellogg Co (KLG)

Days of sales outstanding (DSO)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024
Receivables turnover 13.59 13.54 12.43
DSO days 26.86 26.95 29.36

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.59
= 26.86

WK Kellogg Co's Days Sales Outstanding (DSO) has shown a decreasing trend over the three quarters analyzed. As of June 30, 2024, the DSO was 29.36 days, which improved to 26.95 days by September 30, 2024, and further decreased to 26.86 days as of December 31, 2024.

A lower DSO indicates that the company is able to collect its accounts receivable more efficiently, converting sales into cash quicker. This trend suggests that WK Kellogg Co has been managing its receivables effectively and efficiently over the analyzed period. Reducing DSO can help improve cash flow and overall liquidity as the company is able to convert sales into cash more rapidly.

It would be important for WK Kellogg Co to continue monitoring and managing its DSO to ensure timely collection of receivables, which ultimately impacts the company's working capital and liquidity position positively.