US Foods Holding Corp (USFD)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 19.02 | 19.89 | 19.91 | 20.91 | 17.70 | |
| DSO | days | 19.19 | 18.35 | 18.33 | 17.46 | 20.62 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 19.02
= 19.19
The days of sales outstanding (DSO) for US Foods Holding Corp have shown a fluctuating trend over the past five years. The DSO was 19.19 days as of December 31, 2023, which was slightly higher than the previous year's DSO of 18.35 days. However, compared to two years ago, there has been an increase in DSO from 17.46 days to the current level.
The increase in DSO over the past two years may indicate a slowdown in the collection of accounts receivable, which could potentially impact the company's cash flow and liquidity. It is essential for the company to monitor and manage its DSO effectively to ensure timely collection of receivables and maintain a healthy working capital position.
Further analysis of the reasons behind the increase in DSO, such as changes in credit policies, customer payment behavior, or market conditions, would be necessary to determine the implications for US Foods Holding Corp's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023