Kontoor Brands Inc (KTB)

Days of sales outstanding (DSO)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Receivables turnover 10.72 11.16 12.41 10.62 11.85 11.14 13.93 11.56 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 34.06 32.71 29.40 34.38 30.80 32.78 26.21 31.58 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, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.72
= 34.06

The days of sales outstanding (DSO) metric for Kontoor Brands Inc indicates the average number of days it takes for the company to collect its accounts receivable from customers.

Analyzing the historical trend of DSO for Kontoor Brands Inc from March 31, 2020, to December 31, 2024, reveals fluctuations in the collection efficiency of the company.

The DSO ranged from a low of 26.11 days on June 30, 2022, to a high of 43.45 days on December 31, 2021. Generally, a lower DSO is preferable as it signifies a quicker turnover of accounts receivable into cash, while a higher DSO may indicate delays in collections or potential credit risks.

Monitoring and managing DSO is crucial for Kontoor Brands Inc to optimize cash flow and working capital efficiency. A consistent focus on improving collections processes and credit policies may help in reducing DSO, leading to better liquidity and financial stability for the company.