Kontoor Brands Inc (KTB)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 10.75 11.85 11.53 8.40 9.07
DSO days 33.94 30.80 31.65 43.45 40.26

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.75
= 33.94

Kontoor Brands Inc's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect its accounts receivable. Analyzing the trend in DSO from 2020 to 2024 reveals valuable insights into its receivables management efficiency.

In 2020, the DSO stood at 40.26 days, indicating that, on average, the company took approximately 40 days to collect payments from its customers. By the end of 2021, the DSO increased to 43.45 days, signaling a slight deterioration in the accounts receivable collection process.

However, a positive trend is observed in the subsequent years. In 2022, the DSO decreased significantly to 31.65 days, suggesting an improvement in the efficiency of collecting receivables. This trend continued in 2023 with a further decrease to 30.80 days, reflecting even better management of accounts receivable.

By the end of 2024, the DSO increased slightly to 33.94 days compared to the previous year but still remained lower than the levels observed in 2021 and 2020. This indicates that Kontoor Brands Inc was able to maintain a relatively efficient collections process despite the slight increase in DSO.

Overall, the trend in Kontoor Brands Inc's DSO over the years reflects a mixed performance with some fluctuations but also demonstrates a general improvement in managing its accounts receivable efficiently.