Wingstop Inc (WING)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		31.83	34.89	33.98	36.44	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
DSO	days	11.47	10.46	10.74	10.02	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

December 31, 2024 calculation

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

The Days of Sales Outstanding (DSO) is a metric that measures the average number of days it takes for a company to collect revenue after a sale is made. For Wingstop Inc, the DSO values have fluctuated over the years based on the provided data:

- In December 2021, Wingstop had a relatively high DSO of 10.48 days, indicating a longer time to collect on its sales.
- The DSO improved in the following quarter, decreasing to 8.09 days by March 2022, showing a more efficient collection process.
- However, by June 2022, the DSO increased to 8.87 days, suggesting a slight slowdown in collections.
- The trend continued to fluctuate, with DSO peaking at 11.47 days in December 2024, signifying a potential challenge in collecting revenues efficiently.

Overall, Wingstop Inc should keep a close eye on its DSO trend to ensure timely collection of sales and improved cash flow management, especially during periods of DSO spikes.