Lululemon Athletica Inc. (LULU)

Days of sales outstanding (DSO)

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Receivables turnover		77.08	86.04	83.40	79.26	61.25	77.91	86.65	85.08	81.17	77.26	97.74	86.74	70.41	68.16	79.16	79.15	98.90	104.89	129.46	170.15
DSO	days	4.74	4.24	4.38	4.61	5.96	4.68	4.21	4.29	4.50	4.72	3.73	4.21	5.18	5.36	4.61	4.61	3.69	3.48	2.82	2.15

January 28, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 77.08
= 4.74

Lululemon Athletica Inc.'s Days of Sales Outstanding (DSO) is a measure of how long it takes the company to collect payments from its customers. A lower DSO value indicates that the company is able to collect payments more quickly, which is generally a positive sign.

Analyzing Lululemon's DSO over time, we observe that the DSO has shown some fluctuations. The DSO has ranged from as low as 2.15 days to as high as 5.96 days over the periods recorded. This suggests that the company has been relatively efficient in collecting payments from customers, as the DSO has generally remained at a low level.

The trend in the DSO over the periods indicates that the company has been successful in managing its accounts receivable efficiently. Lower DSO values are indicative of timely collection of payments, which can improve cash flow and liquidity for the company. However, it is important to note that a significant increase in DSO could potentially indicate issues with collecting receivables in a timely manner.

Overall, based on the DSO values observed, Lululemon Athletica Inc. has demonstrated effective management of its accounts receivable and has been successful in efficiently collecting payments from customers.