Kimberly-Clark Corporation (KMB)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.56 | 8.85 | 8.79 | 8.56 | 8.15 | |
| DSO | days | 38.20 | 41.25 | 41.52 | 42.62 | 44.77 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.56
= 38.20
Kimberly-Clark Corp.'s Days of Sales Outstanding (DSO) has shown a decreasing trend over the past five years, indicating an improvement in the company's efficiency in collecting accounts receivable. The DSO decreased from 44.77 days in 2019 to 38.14 days in 2023. This suggests that the company is collecting payments from its customers more quickly, which can help improve cash flow and liquidity.
A lower DSO indicates that Kimberly-Clark Corp. is more effective in managing its accounts receivable and converting credit sales into cash. It could be a result of tighter credit policies, more efficient collection processes, or improved customer creditworthiness.
Overall, the decreasing trend in DSO is a positive sign for Kimberly-Clark Corp., as it signifies improved financial health and working capital management. It demonstrates the company's ability to efficiently manage its receivables and convert them into cash, which is crucial for sustaining and growing its operations.
Peer comparison
Dec 31, 2023
See also:
Kimberly-Clark Corporation Average Receivable Collection Period