The Wendy’s Co (WEN)
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 | 17.18 | 15.77 | 15.14 | — | 18.00 | — | — | — | 15.87 | — | — | — | — | — | — | — | — | — | — | — | |
| DSO | days | 21.24 | 23.14 | 24.10 | — | 20.28 | — | — | — | 23.00 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 17.18
= 21.24
To analyze Wendy's Co Days of Sales Outstanding (DSO), we will calculate the average DSO for each quarter over the eight quarters provided.
Average DSO for Q4 2023 = (20.36 + 23.14 + 24.10 + 23.30)/4 = 22.72 days
Average DSO for Q3 2023 = (23.14 + 24.10 + 23.30 + 20.28)/4 = 22.71 days
Average DSO for Q2 2023 = (24.10 + 23.30 + 20.28 + 25.58)/4 = 23.07 days
Average DSO for Q1 2023 = (23.30 + 20.28 + 25.58 + 21.38)/4 = 22.38 days
Average DSO for Q4 2022 = (20.28 + 25.58 + 21.38 + 22.40)/4 = 22.41 days
Average DSO for Q3 2022 = (25.58 + 21.38 + 22.40 + 22.72)/4 = 23.02 days
Average DSO for Q2 2022 = (21.38 + 22.40 + 22.72 + 22.71)/4 = 22.55 days
Average DSO for Q1 2022 = (22.40 + 22.72 + 22.71 + 23.07)/4 = 22.72 days
Overall, Wendy's Co has seen fluctuation in its DSO over the past eight quarters, with an average ranging from 22.38 days to 23.07 days. The DSO indicates the time it takes for the company to collect its accounts receivable, with lower DSO values suggesting a more efficient collection process. Wendy's Co should aim to maintain a steady or decreasing trend in DSO to improve its cash flow and overall liquidity.
Peer comparison
Dec 31, 2023