Simply Good Foods Co (SMPL)

Days of sales outstanding (DSO)

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Receivables turnover		8.83	8.57	8.81	9.02	9.10
DSO	days	41.32	42.61	41.43	40.45	40.11

August 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.83
= 41.32

Days of Sales Outstanding (DSO) is a financial ratio that indicates the average number of days it takes for a company to collect its accounts receivable. Simply Good Foods Co's DSO has been relatively stable over the past five years, ranging from 40.11 days to 42.61 days.

The DSO of Simply Good Foods Co for the year ending August 31, 2024, was 41.32 days, which indicates that, on average, it takes the company approximately 41 days to collect its accounts receivable. This implies that the company's collection process is efficient, as a lower DSO suggests quicker collection of receivables.

Overall, Simply Good Foods Co's consistent DSO numbers over the years suggest that the company has effective credit and collection practices in place. However, it is essential for the company to regularly monitor and manage its DSO to ensure timely collection and maintain healthy cash flow levels.