Kenvue Inc. (KVUE)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Receivables turnover | 7.38 | ||||
| DSO | days | 49.48 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.38
= 49.48
Based on the data provided, Kenvue Inc.'s days of sales outstanding (DSO) as of Dec 31, 2023, is 49.48 days. DSO is a measure of how quickly a company is able to collect its accounts receivable. A lower DSO indicates faster cash collection from credit sales, which is generally favorable as it reflects efficient credit management and liquidity.
In this case, a DSO of 49.48 days suggests that, on average, it takes Kenvue Inc. approximately 49.48 days to collect payments from its customers after a sale is made. Comparing this figure to industry averages or historical data for the company can provide further insights into the efficiency of the company's accounts receivable management.
A consistent monitoring of DSO over time can help assess changes in the company's credit policies, collection processes, and customer payment behavior, which are essential considerations for managing working capital effectively and ensuring financial stability.
Peer comparison
Dec 31, 2023