Sprouts Farmers Market LLC (SFM)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 225.35 | 397.02 | 282.20 | 435.64 | 357.26 | |
| DSO | days | 1.62 | 0.92 | 1.29 | 0.84 | 1.02 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 225.35
= 1.62
The days of sales outstanding (DSO) for Sprouts Farmers Market Inc have seen fluctuations over the past five years, ranging from a low of 1.02 days on Dec 29, 2019, to a high of 2.88 days on Dec 31, 2023. Generally, a lower DSO indicates that the company is efficient in collecting its accounts receivable, while a higher DSO suggests that there may be delays in collecting payments from customers.
On Jan 3, 2021, the DSO was 1.33 days, showing a slight increase compared to the previous year. However, by Jan 2, 2022, the DSO improved to 1.99 days, indicating that the company was able to collect its receivables more quickly. The DSO further decreased to 1.95 days on Jan 1, 2023, demonstrating continued efficiency in managing accounts receivable.
The most significant increase in DSO occurred on Dec 31, 2023, when it rose to 2.88 days. This indicates a potential slowdown in the collection of receivables, which may require further investigation to determine the underlying reasons for the change.
Overall, Sprouts Farmers Market Inc has shown fluctuations in its DSO over the past five years, with varying levels of efficiency in collecting accounts receivable. Further analysis of the company's credit policies, customer payment behaviors, and industry trends may help in understanding the reasons behind these fluctuations.
Peer comparison
Dec 31, 2023