Sally Beauty Holdings Inc (SBH)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 112.80 | 109.31 | 112.46 | 121.53 | 113.28 | 109.15 | 119.09 | 133.51 | 129.49 | 115.86 | 84.36 | 87.72 | 84.74 | 96.77 | 80.62 | 87.00 | 92.28 | 88.16 | 85.11 | 91.13 | |
| DSO | days | 3.24 | 3.34 | 3.25 | 3.00 | 3.22 | 3.34 | 3.06 | 2.73 | 2.82 | 3.15 | 4.33 | 4.16 | 4.31 | 3.77 | 4.53 | 4.20 | 3.96 | 4.14 | 4.29 | 4.01 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 112.80
= 3.24
The Days of Sales Outstanding (DSO) for Sally Beauty Holdings Inc have shown a relatively stable trend over the past eight quarters. The DSO metric, which measures the average number of days it takes for the company to collect revenue after making a sale, has ranged from a low of 5.68 days in Q2 2022 to a high of 7.74 days in Q1 2024.
Overall, there has been a gradual increase in DSO from Q2 2022 to Q1 2024, indicating a potential lengthening of the collection period for sales. This trend may warrant further investigation to understand the underlying factors influencing the increase in DSO.
The company should monitor its accounts receivable management closely to ensure efficient collection processes and timely receipt of cash inflows. A higher DSO could indicate potential liquidity or credit risk issues that need to be addressed to maintain healthy cash flows and financial stability.
In conclusion, while the DSO has been relatively consistent for Sally Beauty Holdings Inc in recent quarters, the slight uptrend observed in the most recent periods suggests the need for management attention to optimize working capital and maintain strong financial performance.
Peer comparison
Dec 31, 2023