VF Corporation (VFC)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.99 | 7.09 | 7.97 | 7.02 | 8.02 | |
| DSO | days | 45.66 | 51.46 | 45.81 | 52.03 | 45.52 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.99
= 45.66
VF Corporation's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates that the company is able to collect payments more quickly, which is generally a positive sign.
Analyzing the trend in VF Corporation's DSO over the past five years, we observe fluctuations in the metric. In fiscal year 2020, the DSO was 45.52 days, which slightly increased to 52.03 days in 2021, indicating a decline in the efficiency of the company's accounts receivable collection. However, in the following years, the DSO improved to 45.81 days in 2022, 51.46 days in 2023, and further decreased to 45.66 days in 2024.
The recent decrease in DSO to 45.66 days in 2024 suggests that VF Corporation has been able to collect revenue more swiftly compared to the previous year. This improvement may be attributed to more efficient collections processes, stricter credit policies, or better customer payment practices.
Overall, the decreasing trend in DSO from 2021 to 2024 indicates an enhancement in VF Corporation's accounts receivable management efficiency, which is a positive indicator of the company's liquidity and financial health. Continued monitoring of DSO trends will be important to ensure sustainable cash flow management in the future.
Peer comparison
Mar 31, 2024