Sally Beauty Holdings Inc (SBH)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 109.30 | 108.66 | 115.78 | 95.97 | 87.61 | |
| DSO | days | 3.34 | 3.36 | 3.15 | 3.80 | 4.17 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 109.30
= 3.34
The days of sales outstanding (DSO) for Sally Beauty Holdings Inc have shown a consistent improvement over the past five years, indicating more efficient management of accounts receivable. In 2019, the DSO was relatively high at 9.84 days, reflecting a longer period for the company to collect receivables. However, over the subsequent years, there has been a noticeable decline in DSO, reaching 7.43 days by September 30, 2023. This improvement suggests that the company has become more effective in converting its credit sales into cash, potentially enhancing its liquidity and working capital management. The declining trend in DSO reflects positively on the company's credit policies, collection activities, and overall efficiency in managing its accounts receivable.
Peer comparison
Sep 30, 2023