Valvoline Inc (VVV)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 17.74 | 17.72 | 19.32 | 32.24 | 44.13 | 45.94 | 5.14 | 5.03 | 4.99 | 37.38 | 5.71 | 5.63 | 5.58 | 5.44 | 5.89 | 6.90 | 6.18 | 5.96 | 5.57 | 6.30 | |
| DSO | days | 20.57 | 20.59 | 18.90 | 11.32 | 8.27 | 7.95 | 71.02 | 72.58 | 73.10 | 9.76 | 63.92 | 64.84 | 65.40 | 67.14 | 62.01 | 52.92 | 59.09 | 61.24 | 65.56 | 57.92 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 17.74
= 20.57
The days of sales outstanding (DSO) for Valvoline Inc has shown significant fluctuations over the past eight quarters. In Q1 2024 and Q4 2023, DSO remained relatively stable at around 20 days, indicating that the company was able to collect its accounts receivable efficiently within a short period.
However, in Q2 2023, DSO spiked to 131.65 days, suggesting a substantial delay in collecting sales revenue from customers during that quarter. This sharp increase could be a cause for concern as it may indicate issues with credit control or a slowdown in customer payments, which could impact the company's cash flow and liquidity.
The DSO improved in Q1 2023, with a significant decrease to 29.21 days, which indicates that the company rectified the issues seen in the previous quarter and improved its accounts receivable management. Overall, Valvoline Inc should continue to monitor its DSO closely to ensure timely collection of receivables and maintain healthy cash flow levels.
Peer comparison
Dec 31, 2023