YETI Holdings Inc (YETI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 17.32 | 20.08 | 12.88 | 16.69 | 11.05 | |
| DSO | days | 21.08 | 18.18 | 28.33 | 21.87 | 33.03 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 17.32
= 21.08
YETI Holdings Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue from its customers after making a sale. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally seen as a positive indicator of efficient cash flow management.
Analyzing the trend over the past five years, we observe fluctuations in YETI's DSO. In 2023, the DSO decreased to 21.08 days from 18.18 days in 2022, which suggests an improvement in the company's collection efficiency. However, it is worth noting that the DSO in 2023 was still higher than the levels seen in 2020 and 2021.
The DSO in 2021 was relatively high at 28.33 days, indicating that YETI took longer to collect payments from customers during that period. This was an increase from the improved DSO of 21.87 days in 2020, suggesting a potential issue in accounts receivable management that year.
The highest DSO observed in the data set was in 2019 at 33.03 days, indicating a significant delay in collecting receivables that year. The subsequent improvements in 2020 and 2021 show efforts to enhance collection efficiency, although the DSO in 2023 suggests room for further optimization.
In conclusion, while YETI Holdings Inc's DSO has shown variability over the past five years, the recent decrease in 2023 reflects an improvement in collection efficiency. Monitoring DSO trends will be important to assess the company's ability to manage accounts receivable effectively and optimize cash flow in the future.
Peer comparison
Dec 31, 2023