Simply Good Foods Co (SMPL)

Days of sales outstanding (DSO)

		Aug 31, 2024	May 25, 2024	Feb 24, 2024	Nov 25, 2023	Aug 26, 2023	May 27, 2023	Feb 25, 2023	Nov 26, 2022	Aug 27, 2022	May 28, 2022	Feb 26, 2022	Nov 27, 2021	Aug 28, 2021	May 29, 2021	Feb 27, 2021	Nov 28, 2020	Aug 29, 2020	May 30, 2020	Feb 29, 2020	Nov 30, 2019
Receivables turnover		8.83	8.56	8.41	9.01	8.36	8.03	7.84	7.34	8.65	7.72	9.26	8.19	8.74	7.98	9.08	9.06	9.10	11.38	7.31	7.97
DSO	days	41.31	42.64	43.42	40.52	43.68	45.46	46.57	49.72	42.22	47.26	39.42	44.55	41.77	45.75	40.20	40.27	40.11	32.06	49.91	45.80

August 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.83
= 41.31

The Days of Sales Outstanding (DSO) for Simply Good Foods Co fluctuated over the past few years, ranging from 32.06 days to 49.91 days. DSO represents the average number of days it takes for the company to collect its accounts receivable.

Analyzing the trend, we observe that the DSO has been relatively stable around the 40-day mark, with a few deviations. Lower DSO values indicate that the company is collecting payments from its customers more quickly, which is generally favorable as it improves cash flow. Conversely, higher DSO values could suggest potential issues with receivables management and liquidity.

It is crucial for Simply Good Foods Co to monitor and manage its DSO effectively to ensure efficient cash flow and timely collection of receivables. By analyzing DSO over time and comparing it to industry benchmarks, the company can identify areas for improvement in its receivables management processes.