Kroger Company (KR)
Days of sales outstanding (DSO)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 70.04 | 66.12 | 75.12 | 74.09 | 71.33 | |
| DSO | days | 5.21 | 5.52 | 4.86 | 4.93 | 5.12 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 70.04
= 5.21
Days Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days a company takes to collect revenue after a sale is made. A lower DSO value is generally preferred as it suggests faster collection of receivables and better cash flow management.
Analyzing Kroger Company's DSO over the past five years shows a relatively consistent performance. The trend has been fairly stable, with DSO ranging from 4.86 days to 5.52 days. This indicates that Kroger has been efficient in collecting revenue from its customers within a short period.
In the most recent period, ending February 3, 2024, Kroger's DSO stood at 5.21 days, which is slightly lower than the prior year's figure. This suggests that Kroger is maintaining a good level of efficiency in collecting receivables from customers compared to the previous year.
Overall, Kroger's DSO performance reflects effective accounts receivable management, indicating that the company has been successful in converting sales into cash in a timely manner over the years. Moving forward, it would be beneficial for Kroger to continue monitoring its DSO to ensure efficient cash flow management and timely collection of revenue.
Peer comparison
Feb 3, 2024