Ross Stores Inc (ROST)

Days of sales outstanding (DSO)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Receivables turnover		157.08	128.30	158.01	106.10	157.06
DSO	days	2.32	2.84	2.31	3.44	2.32

February 3, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 157.08
= 2.32

To analyze Ross Stores Inc's Days Sales Outstanding (DSO) over the past five years, we can observe a trend of relatively low DSO figures, which is a positive indicator suggesting efficient accounts receivable management.

Specifically, the DSO figures for the past five years are as follows:
- Feb 3, 2024: 2.32 days
- Jan 28, 2023: 2.84 days
- Jan 29, 2022: 2.31 days
- Jan 30, 2021: 3.44 days
- Feb 1, 2020: 2.32 days

The DSO metric measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates that a company is collecting payments from customers more quickly, which can improve cash flow and liquidity.

From the data provided, we can see that Ross Stores Inc has maintained a relatively consistent and low DSO over the past five years, with fluctuations but no significant upward trend. This suggests that the company has been effective in managing its accounts receivable and collecting payments from customers promptly.

Overall, the trend of low DSO figures for Ross Stores Inc indicates strong efficiency in managing its receivables and converting sales into cash, which is a positive sign for the company's financial health and liquidity position.