Autodesk Inc (ADSK)

Days of sales outstanding (DSO)

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Receivables turnover		6.28	5.21	6.12	5.89	5.02
DSO	days	58.17	70.08	59.59	61.93	72.71

January 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.28
= 58.17

Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO value indicates a shorter collection period, which can be a positive sign of efficient accounts receivable management.

Analyzing Autodesk Inc's DSO over the past five years, we observe a mixed trend. In the latest fiscal year ending January 31, 2024, the DSO decreased to 58.17 days from 70.08 days in the previous year. This reduction suggests that Autodesk has been able to collect payments more quickly, which may be attributed to improved credit policies or more efficient collections processes.

Comparing the current DSO figure to the historical data, we note that it is lower than the values reported in the fiscal years 2022 and 2021, indicating a positive trend in accounts receivable management. However, the DSO is still higher than the figure in fiscal year 2020, suggesting that there may be room for further improvement in optimizing the collections cycle.

Overall, the downward trend in DSO for Autodesk Inc is a favorable indicator of effective accounts receivable management, potentially leading to improved cash flows and liquidity. However, continued monitoring of DSO and ongoing efforts to streamline the collections process may help the company further enhance its working capital efficiency.