Williams-Sonoma Inc (WSM)
Days of sales outstanding (DSO)
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 63.06 | 63.79 | 70.60 | 78.19 | 74.98 | 69.31 | 64.25 | 68.23 | 62.62 | 57.65 | 54.72 | 51.26 | 47.23 | 48.82 | 46.71 | 56.22 | 52.80 | 53.49 | 52.25 | 55.87 | |
| DSO | days | 5.79 | 5.72 | 5.17 | 4.67 | 4.87 | 5.27 | 5.68 | 5.35 | 5.83 | 6.33 | 6.67 | 7.12 | 7.73 | 7.48 | 7.81 | 6.49 | 6.91 | 6.82 | 6.99 | 6.53 |
January 28, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 63.06
= 5.79
Days Sales Outstanding (DSO) is a measure of how long it takes for a company to collect its accounts receivable. A lower DSO indicates faster collections and better liquidity management. Williams-Sonoma Inc's DSO has been relatively stable over the past few quarters, ranging from 4.67 days to 7.73 days.
The decreasing trend from 7.73 days on Jan 31, 2021, to 4.67 days on Apr 30, 2023, suggests that the company has been able to collect its receivables more efficiently. This improvement could be attributed to effective credit policies, prompt invoicing, or an increase in cash sales.
The DSO increased to 7.12 days on Aug 1, 2021, then fluctuated around the 5 to 6-day range in subsequent quarters. This stabilization indicates that Williams-Sonoma Inc has maintained a balance between timely collections and maintaining good customer relationships.
Overall, the company's DSO trends reflect sound accounts receivable management practices, with efforts to optimize cash flow without compromising customer credit terms. Monitoring DSO trends can provide insights into the efficiency of the company's credit and collection processes.
See also:
Williams-Sonoma Inc Average Receivable Collection Period (Quarterly Data)