Lamb Weston Holdings Inc (LW)
Days of sales outstanding (DSO)
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.69 | 7.42 | 9.04 | 7.68 | 11.07 | |
| DSO | days | 42.00 | 49.21 | 40.39 | 47.54 | 32.96 |
May 26, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.69
= 42.00
The Days Sales Outstanding (DSO) ratio for Lamb Weston Holdings Inc has fluctuated over the past five years. In the most recent period, as of May 26, 2024, the DSO stands at 42.00 days, indicating that on average, it takes approximately 42 days for the company to collect payment from its customers. This represents an improvement from the previous year's 49.21 days, suggesting a more efficient collection process.
Looking further back, the DSO was 40.39 days in 2022, 47.54 days in 2021, and 32.96 days in 2020. The decrease in DSO from 2021 to 2020 implies that Lamb Weston Holdings Inc was able to collect payments from customers more quickly in that period.
Overall, Lamb Weston Holdings Inc's DSO ratio has shown variability over the past five years, with fluctuations suggesting changes in the company's credit policies, customer payment behavior, or efficiency of its account receivables management. It is important for the company to monitor and manage its DSO ratio effectively to ensure timely collection of receivables and maintain strong cash flow.
Peer comparison
May 26, 2024