Yum! Brands Inc (YUM)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.35 | 10.06 | 10.19 | 9.93 | 8.98 | |
| DSO | days | 39.05 | 36.28 | 35.81 | 36.75 | 40.63 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.35
= 39.05
Yum Brands Inc.'s Days Sales Outstanding (DSO) measures how efficiently the company is able to collect its accounts receivable. A lower DSO indicates quicker collection of cash from sales.
Analyzing the trend in Yum Brands Inc.'s DSO over the last five years, there is a general improvement in collection efficiency. The DSO has decreased from 40.63 days in 2019 to 39.05 days in 2023. This suggests that the company has been able to speed up its collection of receivables over the years.
In 2020, there was a slight increase in DSO to 36.75 days from the prior year, but this was followed by a continued improvement in 2021 and 2022 with DSO decreasing to 35.81 days and 36.28 days, respectively.
Overall, the decreasing trend in DSO indicates that Yum Brands Inc. has been successful in managing its accounts receivable efficiently, potentially enhancing its cash flow and liquidity position. However, it is important to monitor this metric regularly to ensure that the company maintains optimal collection practices.
Peer comparison
Dec 31, 2023