Unifirst Corporation (UNF)
Days of sales outstanding (DSO)
| Aug 31, 2024 | May 25, 2024 | Feb 24, 2024 | Nov 25, 2023 | Aug 26, 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 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.73 | 8.52 | 8.11 | 7.74 | 8.03 | 7.66 | 7.56 | 8.04 | 8.09 | 8.03 | 8.00 | 8.78 | 8.95 | 8.69 | 8.52 | 9.48 | 9.30 | 8.91 | 8.46 | 8.92 | |
| DSO | days | 41.80 | 42.82 | 45.03 | 47.15 | 45.48 | 47.62 | 48.31 | 45.40 | 45.10 | 45.45 | 45.64 | 41.58 | 40.77 | 42.00 | 42.82 | 38.50 | 39.25 | 40.96 | 43.15 | 40.91 |
August 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.73
= 41.80
Based on the data provided, Unifirst Corporation's days of sales outstanding (DSO) have fluctuated over the past few quarters. The DSO measures the average number of days it takes for the company to collect its accounts receivable.
Analyzing the trend, we can see that the DSO has ranged from a low of 38.50 days to a high of 48.31 days over the past two years. The company's DSO has generally been within the range of 40-48 days, indicating that it takes Unifirst Corporation approximately six weeks to collect its accounts receivable on average.
It is important to note that a lower DSO is generally favorable as it indicates the company is collecting its receivables more quickly, improving cash flow and liquidity. On the other hand, a higher DSO may suggest potential issues with collecting payments from customers in a timely manner.
In conclusion, while Unifirst Corporation's DSO has shown some fluctuations, it is essential for the company to closely monitor and manage its accounts receivable collection process to ensure efficient cash flow management and financial stability.
Peer comparison
Aug 31, 2024