Signet Jewelers Ltd (SIG)
Days of sales outstanding (DSO)
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 469.39 | 383.12 | 324.90 | 181.14 | 36.79 | |
| DSO | days | 0.78 | 0.95 | 1.12 | 2.02 | 9.92 |
February 1, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 469.39
= 0.78
Signet Jewelers Ltd has shown a significant improvement in its days of sales outstanding (DSO) over the years, reflecting a more efficient management of its accounts receivable.
As of January 30, 2021, the DSO stood at 9.92 days, indicating that it took the company approximately 9.92 days to collect its receivables. However, this figure has notably decreased to 2.02 days by January 29, 2022, showing a substantial enhancement in collections efficiency.
Continuing this trend, the DSO further decreased to 1.12 days as of January 28, 2023, suggesting an even faster collection of receivables. By February 3, 2024, the DSO decreased to 0.95 days, demonstrating continued improvement in the company's accounts receivable management.
As of February 1, 2025, Signet Jewelers Ltd achieved its lowest DSO figure in the given period, standing at 0.78 days. This indicates that the company has significantly reduced the time taken to collect its receivables, showcasing strong efficiency in managing its sales outstanding.
Overall, the decreasing trend in DSO reflects positively on Signet Jewelers Ltd's ability to efficiently collect payments from its customers, thereby enhancing its cash flow and working capital management.