Kohls Corp (KSS)
Days of sales outstanding (DSO)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 102.59 | 84.73 | 99.85 | 20.02 | 1,318.40 | |
| DSO | days | 3.56 | 4.31 | 3.66 | 18.23 | 0.28 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 102.59
= 3.56
To analyze Kohls Corp's Days of Sales Outstanding (DSO) over the past five years, we can observe a decreasing trend in DSO from 2018 to 2020, with only 0.28 days in February 2020. This indicates that in 2020, Kohls was able to convert its accounts receivable into cash rapidly, implying efficient collection from its customers.
However, in January 2021, there was a significant spike to 18.23 days, signaling a delay in collecting payments from customers compared to the previous years. This increase could be related to changes in customer behavior, economic conditions, or the company's credit policies.
In the subsequent years, from 2022 to 2024, Kohls managed to reduce its DSO back to levels closer to its historical low levels. This improvement suggests that the company may have implemented effective strategies to enhance its accounts receivable management and maintain healthier cash flows.
Overall, monitoring DSO trends provides insights into Kohls Corp's efficiency in collecting payments from customers and managing its working capital effectively over the past five years.
Peer comparison
Feb 3, 2024