Lamb Weston Holdings Inc (LW)
Days of sales outstanding (DSO)
| May 26, 2024 | Feb 25, 2024 | Nov 26, 2023 | Aug 27, 2023 | May 28, 2023 | Feb 26, 2023 | Nov 27, 2022 | Aug 28, 2022 | May 29, 2022 | Feb 27, 2022 | Nov 28, 2021 | Aug 29, 2021 | May 30, 2021 | Feb 28, 2021 | Nov 29, 2020 | Aug 30, 2020 | May 31, 2020 | Feb 23, 2020 | Nov 24, 2019 | Aug 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.69 | 8.89 | 8.28 | 8.11 | 7.39 | 9.60 | 8.86 | 9.31 | 9.04 | 9.05 | 9.07 | 9.42 | 7.68 | 9.35 | 10.06 | 10.98 | 11.09 | 10.71 | 9.85 | 10.32 | |
| DSO | days | 42.00 | 41.07 | 44.06 | 45.03 | 49.41 | 38.02 | 41.22 | 39.22 | 40.39 | 40.32 | 40.24 | 38.73 | 47.54 | 39.05 | 36.29 | 33.25 | 32.92 | 34.09 | 37.05 | 35.36 |
May 26, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.69
= 42.00
Days Sales Outstanding (DSO) is a key financial ratio used to evaluate how efficiently a company manages its accounts receivable. It indicates the average number of days it takes for a company to collect payment after a sale is made.
Analyzing the DSO trend of Lamb Weston Holdings Inc over the past several quarters, we observe fluctuating values ranging from 32.92 days to 49.41 days. A lower DSO value signifies quicker collection of receivables, indicating efficient management of credit policies and timely collection efforts. Conversely, a higher DSO value suggests slower collection, which may imply potential issues with credit policies or collections processes.
In the recent periods, Lamb Weston Holdings Inc has generally shown a decreasing trend in DSO, which is a positive indication of improved efficiency in collecting payments from customers. The lowest DSO value of 32.92 days in August 2020 suggests a significant improvement in the company's accounts receivable management during that period.
While the overall trend reflects a positive direction, it is essential for the company to continue monitoring and managing its accounts receivable effectively to ensure timely collection and maintain a healthy cash flow position. A consistent focus on optimizing credit policies, enhancing collection processes, and monitoring customer creditworthiness can further improve the DSO metric and overall financial performance of Lamb Weston Holdings Inc.
Peer comparison
May 26, 2024