Valvoline Inc (VVV)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 17.72 | 18.65 | 45.10 | 5.48 | 5.96 | |
| DSO | days | 20.59 | 19.57 | 8.09 | 66.55 | 61.24 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 17.72
= 20.59
The days of sales outstanding (DSO) ratio for Valvoline Inc has shown variability over the past five years. In September 2023, the DSO stood at 20.56 days, indicating that on average, it took the company approximately 20.56 days to collect its accounts receivable. This represents a slight increase from the previous year's DSO of 19.52 days.
Comparing the DSO ratio to earlier years, it is evident that there has been a significant improvement from the high DSO of 67.17 days in 2020 and 61.24 days in 2019. The decrease in DSO over the past two years suggests that Valvoline Inc has been more effective in collecting its receivables in a timely manner, potentially translating to improved cash flow and working capital management.
Furthermore, the decreasing trend in DSO may indicate that the company has implemented more efficient credit and collection practices, possibly leading to better liquidity and lower credit risk. However, it is essential to continue monitoring this trend to ensure that the company maintains its efforts to manage its accounts receivable effectively.
Peer comparison
Sep 30, 2023