Walgreens Boots Alliance Inc (WBA)

To analyze Walgreens Boots Alliance Inc's Days of Sales Outstanding (DSO) over the past five years, we observe a general trend of decreasing DSO, indicating an improvement in the company's efficiency in collecting accounts receivable.

In the fiscal year ending August 31, 2020, the DSO stood at 18.73 days, reflecting a relatively longer period for the company to convert its accounts receivable into cash. Subsequently, there has been a consistent reduction in DSO over the following years, reaching 14.30 days by the end of August 31, 2024.

This downward trend suggests that Walgreens Boots Alliance Inc has been managing its receivables more effectively, possibly through enhanced credit policies, improved collection processes, or tighter credit terms with customers. A lower DSO signifies that the company is collecting payments from customers more swiftly, which can enhance cash flow and working capital management.

Overall, the decreasing DSO trend is a positive signal of the company's operational efficiency and financial health, as it indicates a more streamlined and effective accounts receivable management strategy over the years.

Peer comparison

Aug 31, 2024

See also:

Walgreens Boots Alliance Inc Average Receivable Collection Period