Kroger Company (KR)
Days of sales outstanding (DSO)
| Feb 3, 2024 | Nov 4, 2023 | Aug 12, 2023 | May 20, 2023 | Jan 28, 2023 | Nov 5, 2022 | Aug 13, 2022 | May 21, 2022 | Jan 29, 2022 | Nov 6, 2021 | Aug 14, 2021 | May 22, 2021 | Jan 30, 2021 | Nov 7, 2020 | May 23, 2020 | Feb 1, 2020 | Nov 9, 2019 | Aug 17, 2019 | May 25, 2019 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 70.04 | 76.03 | 81.08 | 83.98 | 66.12 | 72.28 | 76.82 | 74.51 | 75.12 | 70.55 | 67.77 | 73.73 | 73.19 | 79.23 | 81.19 | 71.33 | 75.67 | 77.07 | 77.21 | 75.98 | |
| DSO | days | 5.21 | 4.80 | 4.50 | 4.35 | 5.52 | 5.05 | 4.75 | 4.90 | 4.86 | 5.17 | 5.39 | 4.95 | 4.99 | 4.61 | 4.50 | 5.12 | 4.82 | 4.74 | 4.73 | 4.80 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 70.04
= 5.21
Days of Sales Outstanding (DSO) is a key financial metric that measures the average number of days it takes for a company to collect payments from its customers after a sale is made. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable as it signifies efficient accounts receivable management.
Analyzing Kroger Company's DSO over the past twenty quarters, we can observe fluctuations in the metric. The DSO values range from 4.35 days to 5.52 days during this period. The trend appears to show some variability, with occasional increases followed by decreases in DSO.
It is important to note that a decreasing trend in DSO generally indicates that the company is improving its collections process and managing its accounts receivable more efficiently. Conversely, an increasing trend in DSO may raise concerns about potential issues in collecting payments promptly.
Overall, while Kroger Company's DSO has shown some variability over time, it remains relatively stable within a range of 4.35 to 5.52 days. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Kroger's performance in managing its accounts receivable effectively.
Peer comparison
Feb 3, 2024