United Natural Foods Inc (UNFI)
Days of sales outstanding (DSO)
| Aug 3, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 31.27 | 30.11 | 29.53 | 29.03 | 33.19 | 29.82 | 29.48 | 21.37 | 23.42 | 22.75 | 21.99 | 21.44 | 23.89 | — | 23.55 | 22.61 | 23.21 | — | — | — | |
| DSO | days | 11.67 | 12.12 | 12.36 | 12.57 | 11.00 | 12.24 | 12.38 | 17.08 | 15.58 | 16.04 | 16.60 | 17.02 | 15.28 | — | 15.50 | 16.14 | 15.73 | — | — | — |
August 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 31.27
= 11.67
Days of Sales Outstanding (DSO) is a financial ratio that measures the average number of days a company takes to collect payment from its customers after making a sale. Lower DSO values indicate that a company is efficient in collecting cash from its customers, while higher DSO values may indicate liquidity or credit risks.
Analyzing United Natural Foods Inc's historical DSO data reveals fluctuations in the company's collection efficiency over time. The DSO ranged from 11.00 to 17.08 days, with the lowest value of 11.00 days recorded on Jul 29, 2023, and the highest value of 17.08 days observed on Oct 29, 2022.
Overall, the trend in DSO appears to be relatively stable, with minor fluctuations around the 12 to 17-day range. This suggests that United Natural Foods Inc has been consistent in its collection efforts, maintaining a moderate level of efficiency in converting sales into cash.
In instances where DSO spikes, such as the peak value on Oct 29, 2022, it may indicate delays in customer payments, potentially impacting the company's cash flow and working capital management. Conversely, a decrease in DSO, as seen on Jul 29, 2023, could signal improvements in collections processes and tighter credit control.
Monitoring DSO over time can provide insights into the company's credit and collection policies, customer payment behavior, and overall financial health. In the case of United Natural Foods Inc, maintaining a balance between prompt collection and customer relationships is essential to optimizing cash flow and managing liquidity effectively.
Peer comparison
Aug 3, 2024