Unifirst Corporation (UNF)
Days of sales outstanding (DSO)
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.03 | 8.04 | 8.78 | 9.48 | 8.94 | |
| DSO | days | 45.48 | 45.40 | 41.58 | 38.49 | 40.84 |
August 26, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.03
= 45.48
To analyze the days of sales outstanding (DSO) for Unifirst Corp., we will examine the trend over the past five years. DSO reflects the average number of days it takes for the company to collect revenue after making a sale.
In 2023, the DSO increased slightly to 45.62 days compared to 45.46 days in 2022. This indicates a marginal slowdown in the collection of receivables. However, when compared to 2021, the DSO has increased more significantly, implying a lengthening of the collection period.
In 2021, the DSO was 41.64 days, marking an increase from 38.62 days in 2020. This suggests that the company took longer to collect revenue from its sales, possibly indicative of challenges in accounts receivable management or changes in customer payment behaviors.
The DSO in 2020 decreased from 41.04 days in 2019 to 38.62 days, reflecting a positive trend of quicker collection of receivables, indicating more efficient accounts receivable management.
Overall, the trend in DSO for Unifirst Corp. shows some fluctuations over the years, with a general upswing in recent years. The company may need to focus on improving its accounts receivable collection processes to shorten DSO and enhance cash flow management.
Peer comparison
Aug 26, 2023