Lululemon Athletica Inc. (LULU)

Days of sales outstanding (DSO)

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Receivables turnover		76.84	61.32	81.06	70.47	98.99
DSO	days	4.75	5.95	4.50	5.18	3.69

January 28, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 76.84
= 4.75

Lululemon Athletica Inc.'s days of sales outstanding (DSO) measures the average number of days it takes for the company to collect payments after making a sale. A lower DSO indicates faster cash collection and efficient accounts receivable management.

Over the past five years, Lululemon's DSO has shown fluctuations. In January 2024, the DSO decreased to 4.75 days from 5.95 days in January 2023, indicating an improvement in the company's ability to collect payments promptly. This could suggest more efficient credit and collection procedures or better customer payment behavior.

Comparing the DSO to previous years, the DSO was lowest on February 2, 2020, at 3.69 days, indicating that the company was very efficient in collecting payments at that time. However, the DSO increased in subsequent years but returned to a relatively low level in January 2024.

Overall, Lululemon Athletica Inc. has shown variations in its DSO over the past five years, with fluctuations possibly influenced by factors such as changes in sales volume, customer payment patterns, and effectiveness of credit policies. A sustained low DSO level is indicative of efficient working capital management and could positively impact the company's liquidity and financial performance.