Wingstop Inc (WING)

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		37.08	36.64	38.47	—	37.79	36.77	41.17	45.11	34.83	45.23	46.46	44.38	50.48	44.39	40.25	40.28	38.58	31.92	31.61	33.32
DSO	days	9.84	9.96	9.49	—	9.66	9.93	8.87	8.09	10.48	8.07	7.86	8.22	7.23	8.22	9.07	9.06	9.46	11.44	11.55	10.96

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 37.08
= 9.84

To analyze Wingstop Inc's Days Sales Outstanding (DSO) over time, we need to calculate the average DSO for each year based on the available data points. DSO is a measure of how well a company manages its accounts receivable by indicating the average number of days it takes to collect revenue after a sale is made.

By averaging the DSO values for each quarter of a year, we can determine the annual trend. Comparing the annual DSO averages can provide insights into Wingstop Inc's efficiency in collecting payments from customers. A decreasing trend in DSO indicates more efficient collections, while an increasing trend may suggest potential issues in receivables management or customer credit.

We will calculate the average DSO for each year by summing the quarterly DSO values and dividing by the number of available data points. This analysis will help us understand the company's credit policies, collection processes, and overall financial health in terms of accounts receivable management.