PVH Corp (PVH)
Days of sales outstanding (DSO)
| Feb 4, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.62 | 9.77 | 12.28 | 11.12 | 13.37 | |
| DSO | days | 31.41 | 37.36 | 29.71 | 32.83 | 27.31 |
February 4, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.62
= 31.41
The Days of Sales Outstanding (DSO) ratio measures the average number of days a company takes to collect payment after making a sale. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally favorable as it improves cash flow and liquidity.
Here is the trend analysis of PVH Corp's DSO over the past five years:
- In February 2024, the DSO was 31.41 days, showing an improvement compared to the previous year when it was 37.36 days.
- This decrease in DSO from January 2023 to February 2024 suggests that PVH Corp has been able to collect payments from customers more efficiently, possibly implementing better credit and collection policies.
- Comparing the DSO to previous years, the company's collection period was also better in 2024 compared to 2021 and 2020 when it was 32.83 days and 27.31 days, respectively. However, it was slightly higher than in 2022 when the DSO stood at 29.71 days.
Overall, the decreasing trend in PVH Corp's DSO over the years indicates an improvement in the company's accounts receivable management, leading to more efficient collections and potentially better cash flow management.
Peer comparison
Feb 4, 2024