Leslies Inc (LESL)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 51.58 | 39.75 | 26.10 | — | 30.18 | 30.73 | 29.20 | 30.14 | 31.05 | 29.88 | ||||
| DSO | days | 7.08 | 9.18 | 13.98 | — | 12.09 | 11.88 | 12.50 | 12.11 | 11.75 | 12.21 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 51.58
= 7.08
The Days Sales Outstanding (DSO) is a measure of how many days, on average, it takes for a company to collect revenue after making a sale. A lower DSO indicates faster collection of accounts receivable and better liquidity management.
Based on the data provided for Leslies Inc:
- The trend in DSO for the past quarters shows some fluctuation. In Dec 2023, the DSO was 7.08 days, which was a decrease from the 9.18 days reported in Sep 2023.
- The DSO reached its highest point in Jun 2023 at 13.98 days, indicating a delay in collections compared to previous periods.
- There is missing data for Mar 2023, which limits the ability to observe a consistent trend.
- Comparing the latest DSO of 7.08 days to historical data, it is lower than the DSO reported in the same period last year, suggesting an improvement in collection efficiency.
Overall, Leslies Inc should continue to monitor its DSO to ensure efficient management of accounts receivable and timely collection of revenue, which plays a significant role in maintaining healthy cash flow and financial stability.
Peer comparison
Dec 31, 2023