The Wendy’s Co (WEN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 17.18 | 18.00 | 15.87 | 15.78 | 13.04 | |
| DSO | days | 21.24 | 20.28 | 23.00 | 23.13 | 27.98 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 17.18
= 21.24
The days of sales outstanding (DSO) for Wendy's Co have shown a consistent improvement over the past five years. The DSO decreased from 25.09 days as of December 29, 2019, to 20.36 days as of December 31, 2023. This improvement indicates that Wendy's Co has been able to collect payments from customers more efficiently over time. Lower DSO values suggest that the company is converting its accounts receivable into cash more quickly, which can improve liquidity and working capital management. Overall, the trend in DSO reflects positively on Wendy's Co's ability to manage its accounts receivable effectively.
Peer comparison
Dec 31, 2023
Company name
Symbol
DSO
The Wendy’s Co
WEN
21.24
Shake Shack Inc
SHAK
5.66
Starbucks Corporation
SBUX
12.01