Wolverine World Wide Inc (WWW)
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 | 9.44 | 8.41 | 10.17 | — | 10.76 | 6.04 | 6.21 | 6.81 | 7.56 | 6.32 | 5.77 | 5.75 | 6.67 | 5.67 | 7.45 | 6.77 | 6.87 | 6.28 | 6.13 | 5.94 | |
| DSO | days | 38.65 | 43.40 | 35.90 | — | 33.93 | 60.39 | 58.80 | 53.57 | 48.31 | 57.73 | 63.29 | 63.46 | 54.71 | 64.41 | 48.96 | 53.93 | 53.17 | 58.14 | 59.53 | 61.49 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.44
= 38.65
Days Sales Outstanding (DSO) is a crucial metric for Wolverine World Wide Inc as it indicates the average number of days it takes for the company to collect payment after making a sale. A lower DSO is generally favorable as it signifies efficient cash collection and potentially strong customer credit policies.
Analyzing the DSO trend for Wolverine World Wide Inc over the past few quarters, we observe fluctuations in the collection period. In the most recent quarter, the DSO stood at 35.90 days, which reflects a decrease compared to the previous quarter's 43.40 days. This suggests an improvement in the company's ability to collect payments promptly, possibly due to more effective credit management or enhanced invoicing processes.
Looking at historical data, the DSO has shown variability, with peaks and troughs. The company experienced a significant spike in DSO in the third quarter of 2022, reaching 60.39 days, indicating a delay in receiving payments during that period. However, there has been a general downward trend in DSO from the earlier quarters of 2022 to the latest reported quarter in 2023, indicating a potential improvement in collections efficiency.
Overall, Wolverine World Wide Inc's DSO trend suggests efforts to streamline its accounts receivable process and enhance cash flow management. It is important for the company to continue monitoring DSO and assessing the effectiveness of credit policies to ensure timely collection of receivables and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2023