World Kinect Corporation (WKC)

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		17.67	17.10	21.43	19.73	17.92	17.37	12.09	10.76	13.30	12.84	12.11	10.96	16.44	20.11	21.09	18.21	12.73	13.93	14.03	14.38
DSO	days	20.66	21.35	17.03	18.50	20.36	21.02	30.20	33.93	27.43	28.43	30.13	33.29	22.20	18.15	17.31	20.04	28.67	26.21	26.01	25.38

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 17.67
= 20.66

To analyze the days of sales outstanding (DSO) trend for World Kinect Corp, we look at the DSO figures over the past eight quarters. DSO indicates the average number of days the company takes to collect payment after making a sale. A lower DSO signifies better efficiency in collecting receivables.

In Q1 2022, the DSO was relatively high at 33.93 days, indicating slower collection of receivables. However, from Q2 2022 to Q1 2023, there was a downward trend in DSO, reaching 17.03 days in Q2 2023. This suggests an improvement in the company's collection processes and efficiency in managing receivables during this period.

In Q3 2023, there was a slight increase in DSO to 21.22 days, followed by a decrease to 20.93 days in Q4 2023. Despite the small fluctuation in the last two quarters, the overall trend shows a positive trajectory in managing receivables efficiently.

World Kinect Corp's management should continue monitoring the DSO metric to ensure timely collection of receivables, which can improve cash flows and overall financial health. Overall, the company has shown improvement in its DSO over the past quarters, showcasing a positive trend in collecting payments from customers promptly.