Wingstop Inc (WING)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		31.83	37.08	37.79	34.83	50.48
DSO	days	11.47	9.84	9.66	10.48	7.23

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 31.83
= 11.47

The days sales outstanding (DSO) of Wingstop Inc has shown an increasing trend over the period under consideration. From 7.23 days as of December 31, 2020, the DSO increased to 10.48 days by December 31, 2021. Subsequently, there was a slight decrease to 9.66 days by December 31, 2022, followed by a marginal increase to 9.84 days by December 31, 2023. By the end of the period, on December 31, 2024, the DSO further increased to 11.47 days. The upward trend in DSO suggests that Wingstop Inc is taking longer to collect its accounts receivable, which may indicate potential challenges in managing its credit policies or collection processes. Monitoring and addressing the causes of this increasing trend in DSO is crucial for the company to maintain healthy cash flows and overall financial performance.