Kimberly-Clark Corporation (KMB)

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 9.54 8.88 8.61 8.36 8.87 8.64 8.14 7.83 8.74 8.02 8.09 8.56 8.56 8.88 9.30 7.48 8.16 8.00 7.68 7.74
DSO days 38.25 41.12 42.38 43.66 41.16 42.25 44.84 46.62 41.74 45.52 45.15 42.65 42.65 41.09 39.23 48.82 44.75 45.61 47.55 47.15

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.54
= 38.25

To analyze Kimberly-Clark Corp.'s days of sales outstanding (DSO) based on the provided data, we observe a decreasing trend in DSO over the quarters. DSO measures the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable for cash flow management.

In Q4 2023, the DSO was 38.14 days, showing an improvement from the previous quarter's 41.07 days in Q3 2023. This suggests that Kimberly-Clark Corp. was able to collect payments more efficiently in the most recent quarter.

Looking at the year-over-year comparison, in Q4 2023, the DSO of 38.14 days decreased compared to Q4 2022, where it was 41.25 days. This indicates a positive trend in collecting payments promptly over the year.

Overall, the decreasing trend in DSO from Q1 2022 to Q4 2023 reflects an improvement in Kimberly-Clark Corp.'s accounts receivable management. It is worth noting that a declining DSO can signify effective credit policies, improved collection processes, or possibly more favorable terms with customers.

Peer comparison

Dec 31, 2023

Company name
Symbol
DSO
Kimberly-Clark Corporation
KMB
38.25
Avery Dennison Corp
AVY
62.43

See also:

Kimberly-Clark Corporation Average Receivable Collection Period (Quarterly Data)