Kontoor Brands Inc (KTB)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 11.90 | 11.18 | 13.98 | — | 11.53 | 10.83 | 13.98 | 8.93 | 8.40 | 9.15 | 11.12 | 10.17 | 9.07 | 9.23 | 13.81 | 11.22 | ||||
| DSO | days | 30.68 | 32.65 | 26.11 | — | 31.65 | 33.70 | 26.11 | 40.86 | 43.45 | 39.89 | 32.82 | 35.89 | 40.26 | 39.53 | 26.43 | 32.54 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.90
= 30.68
Looking at the days of sales outstanding (DSO) for Kontoor Brands Inc over the past few quarters, we observe fluctuations in the collection period for accounts receivable. In the most recent period, as of December 31, 2023, the DSO was 30.68 days, indicating that on average, it took approximately 30.68 days for the company to collect its outstanding sales revenue.
Analyzing the trend over the last few quarters, we note that there was an improvement in DSO from 35.89 days in March 31, 2021, to 26.11 days in June 30, 2023. This suggests an efficient collection process during the specified period. However, there were instances of higher DSO figures, such as 43.45 days on December 31, 2021, and 40.86 days on March 31, 2022, which may indicate slower collections or potential issues with accounts receivable management during those periods.
It is important for the company to effectively manage its DSO and aim for a balance between prompt collections and maintaining good customer relationships. A lower DSO typically signifies better liquidity and efficient working capital management. Monitoring DSO trends can provide insights into the company's cash flow performance and the effectiveness of its credit and collection policies.
Peer comparison
Dec 31, 2023