Apple Inc (AAPL)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.90 | 6.22 | 6.42 | 7.05 | 7.25 | |
| DSO | days | 61.83 | 58.68 | 56.82 | 51.77 | 50.31 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.90
= 61.83
Over the past five years, Apple Inc's Days of Sales Outstanding (DSO) has shown a gradual increase, indicating a trend of the company taking longer to collect its accounts receivable. In the latest fiscal year, ending on September 30, 2024, Apple's DSO stood at 61.83 days, a slight increase from the previous year's DSO of 58.68 days. This suggests that it took Apple approximately 61.83 days to collect its sales revenue from customers, up from 58.68 days the year before.
Comparing the DSO over a five-year period, we can observe a general upward trend in the collection period, with DSO increasing from 50.31 days in 2020 to 61.83 days in 2024. A rising DSO may indicate potential issues with accounts receivable management, such as extending credit terms to customers or difficulty in collecting payments promptly.
It is essential for Apple Inc to monitor and manage its DSO effectively to ensure efficient cash flow and liquidity. A high DSO can tie up working capital and impact the company's financial position. Therefore, Apple may need to evaluate its credit policies, collection procedures, and customer relationships to maintain a healthy balance between sales growth and timely collections.
Peer comparison
Sep 30, 2024