Kenvue Inc. (KVUE)

Days of sales outstanding (DSO)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023
Receivables turnover 7.10 6.43 6.83 7.05 7.38
DSO days 51.42 56.78 53.46 51.74 49.48

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.10
= 51.42

Based on the provided data, we can observe the trend in Kenvue Inc.'s Days Sales Outstanding (DSO) over the period from December 31, 2023, to December 31, 2024. DSO represents the average number of days it takes for a company to collect payment after making a sale.

- As of December 31, 2023, the company's DSO stood at 49.48 days, indicating that, on average, it took approximately 49.48 days for Kenvue Inc. to collect payments from its customers.
- By March 31, 2024, the DSO increased slightly to 51.74 days, signifying a longer duration for the company to collect payments, which may be a cause for concern or further analysis.
- The trend continued with a further increase in DSO to 53.46 days by June 30, 2024, suggesting a potential slowdown in the company's collection of accounts receivable.
- The DSO peaked at 56.78 days by September 30, 2024, representing the longest collection period within the analyzed period, which could indicate potential issues with receivables management or customer payment behaviors.
- However, by December 31, 2024, the DSO decreased to 51.42 days, showing a slight improvement in the company's collection efficiency compared to the previous quarter.

Overall, the fluctuations in Kenvue Inc.'s DSO over the analyzed period may indicate changes in the company's credit policies, customer payment behaviors, or the efficiency of its accounts receivable management. Further analysis and comparison with industry benchmarks can provide additional insights into the company's performance in managing its receivables effectively.