Skechers USA Inc (SKX)
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 | 8.48 | 7.97 | 7.71 | 6.72 | 7.95 | 7.12 | 7.06 | 6.15 | 7.70 | 7.08 | 6.74 | 5.48 | 6.65 | 5.85 | 8.50 | 6.02 | 7.45 | 7.00 | 6.97 | 6.04 | |
| DSO | days | 43.03 | 45.81 | 47.37 | 54.29 | 45.92 | 51.23 | 51.68 | 59.38 | 47.39 | 51.58 | 54.14 | 66.63 | 54.92 | 62.38 | 42.95 | 60.67 | 48.98 | 52.14 | 52.36 | 60.46 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.48
= 43.03
To analyze Skechers U S A, Inc.'s days of sales outstanding (DSO) over the past eight quarters, we observe a fluctuating trend in the collection efficiency of the company. DSO represents the average number of days it takes for a company to collect revenue after a sale has been made.
In Q1 2022, the DSO stood at 59.18 days, indicating that Skechers took nearly two months to collect its sales revenue. This elevated DSO level may suggest inefficiencies in the company's collections process or potential issues with credit policies.
Subsequently, in Q2 and Q3 2022, the DSO decreased slightly to 51.51 days and 51.05 days, respectively. While there was a reduction in the DSO, it remained relatively high compared to industry benchmarks, signaling ongoing challenges in managing accounts receivable.
However, in Q4 2022, there was a notable improvement as the DSO decreased to 45.81 days, reflecting a more efficient collections process during that period. This positive trend continued into Q1 2023, with a further decline to 54.35 days, which suggests a continued focus on improving collection practices.
In Q2 and Q3 2023, the DSO increased to 47.41 days and 45.85 days, respectively, indicating a slight deterioration in collection efficiency compared to the preceding quarters. This upward trend in DSO may raise concerns about potential delays in receiving payments from customers.
Finally, in Q4 2023, the DSO decreased to 43.00 days, demonstrating a reversal of the previous upward trend and suggesting an improvement in the company's collections activities during the most recent quarter.
Overall, Skechers U S A, Inc. has shown fluctuations in its DSO over the past eight quarters, with periods of improvement followed by slight setbacks. Monitoring and managing DSO effectively is crucial for the company to ensure timely cash inflows and maintain optimal liquidity levels.
Peer comparison
Dec 31, 2023