Accenture plc (ACN)

Days of sales outstanding (DSO)

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Receivables turnover		5.47	6.00	5.87	5.74	6.16
DSO	days	66.78	60.86	62.13	63.54	59.22

August 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.47
= 66.78

To analyze Accenture plc's Days Sales Outstanding (DSO) over the past five years, we observe an increasing trend from 59.22 days in 2020 to 66.78 days in 2024. This indicates that, on average, it took the company longer to collect outstanding revenues from customers over this period.

In 2021, the DSO was 63.54 days, showing a slight increase from the previous year but still lower than the 2024 figure. In 2022 and 2023, the DSO continued to rise to 62.13 days and 60.86 days, respectively. However, in 2024, there was a significant jump to 66.78 days.

The increase in DSO may suggest potential issues with the company's accounts receivable management or collection processes. A higher DSO could mean delays in receiving payments from customers, which could impact the company's cash flow and liquidity.

Further investigation into the reasons behind the rising DSO would be beneficial to understand if it is due to changes in sales terms, customer creditworthiness, or operational inefficiencies. Monitoring and managing DSO effectively is essential for ensuring a healthy cash conversion cycle and optimizing working capital management for Accenture plc.