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