Kontoor Brands Inc (KTB)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.85 | 11.53 | 8.40 | 9.07 | 11.16 | |
| DSO | days | 30.80 | 31.65 | 43.45 | 40.26 | 32.72 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.85
= 30.80
Kontoor Brands Inc's Days of Sales Outstanding (DSO) has shown fluctuations over the past five years. In 2023, the company's DSO decreased to 30.80 days from 31.65 days in 2022, indicating an improvement in collecting receivables from customers. This suggests efficient management in converting sales into cash in the most recent period.
Comparing 2023 to 2021, there is a significant reduction in DSO from 43.45 days to 30.80 days, reflecting a notable improvement in the collection process and potentially tighter credit policies during this period.
Furthermore, when comparing DSO in 2023 to 2020 and 2019, the trend shows a more favorable position. In 2020, DSO was 40.26 days, which decreased to 32.72 days in 2019 before further improving to 30.80 days in 2023.
Overall, the decreasing trend in DSO over the years signifies that Kontoor Brands Inc has been successful in managing its account receivables efficiently and converting sales into cash more quickly. This improvement suggests effective credit and collection policies, stronger customer relationships, and potentially better inventory management, all contributing to the company's financial health.
Peer comparison
Dec 31, 2023