Walgreens Boots Alliance Inc (WBA)
Days of sales outstanding (DSO)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 23.29 | 23.81 | 25.96 | 23.40 | 23.38 | 27.39 | 26.41 | 26.68 | 25.39 | 22.53 | 24.12 | 26.61 | 28.31 | 17.93 | 19.50 | 19.81 | 18.25 | 18.41 | 18.87 | 18.76 | |
| DSO | days | 15.67 | 15.33 | 14.06 | 15.60 | 15.61 | 13.33 | 13.82 | 13.68 | 14.37 | 16.20 | 15.13 | 13.72 | 12.89 | 20.35 | 18.71 | 18.42 | 20.00 | 19.82 | 19.35 | 19.45 |
February 29, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 23.29
= 15.67
Days of Sales Outstanding (DSO) is a measure of how many days it takes for a company to collect its accounts receivable from sales. A lower DSO indicates that the company is collecting payments from customers more quickly.
Analyzing the trend of Walgreens Boots Alliance Inc's DSO over the past few quarters, we observe fluctuations but with a general downward trend. In the most recent quarter, ending February 29, 2024, the DSO stood at 15.67 days, slightly higher than the previous quarter at 15.33 days. This may suggest a slight delay in collecting payments compared to the prior period.
Looking back further, we note that the company had managed to maintain a relatively stable DSO around 13-14 days from August 2022 to November 2023, indicating efficient account receivables management during that period. However, there was a notable increase in DSO to 20.35 days in February 2021, which may have been a cause for concern as it indicated delays in collecting payments.
Overall, while there have been fluctuations in Walgreens Boots Alliance Inc's DSO over the quarters, the general trend has been a decline, which is positive as it signifies an improvement in the company's ability to collect payments more promptly. Monitoring DSO trends is crucial for evaluating the company's liquidity, efficiency of operations, and its ability to manage credit and collections effectively.
Peer comparison
Feb 29, 2024
See also:
Walgreens Boots Alliance Inc Average Receivable Collection Period (Quarterly Data)