Agilysys Inc (AGYS)

Days of sales outstanding (DSO)

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Receivables turnover		8.09	4.64	7.86	8.11	8.89	6.02	8.66	7.52	6.49	6.11	7.77	6.41	5.34	4.54	7.23	4.99	4.48	5.29	6.56	5.65
DSO	days	45.13	78.71	46.42	45.02	41.08	60.59	42.17	48.55	56.23	59.72	46.97	56.95	68.41	80.38	50.51	73.15	81.46	68.96	55.61	64.57

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.09
= 45.13

Days of Sales Outstanding (DSO) is a key indicator used to evaluate how efficiently a company is managing its accounts receivable. A lower DSO indicates that the company is collecting its outstanding receivables more quickly, which is generally preferred as it represents a shorter time period for converting sales into cash.

Analyzing Agilysys Inc's DSO over the past quarters reveals fluctuations in the collection period. In the most recent quarter, as of March 31, 2024, the DSO stands at 45.13 days, which is a significant improvement from the previous quarter's DSO of 78.71 days. This indicates that the company has been able to collect its outstanding receivables more efficiently in the current period.

Comparing the DSO to historical data further highlights trends in Agilysys Inc's accounts receivable management. For example, there was a spike in DSO in the fourth quarter of 2023, which was subsequently reduced in the first quarter of 2024. This suggests that the company might have experienced challenges in collecting receivables in the past, but has since made improvements in its collection processes.

Overall, a decreasing trend in DSO over time is a positive sign, as it demonstrates better cash flow management and may indicate an improvement in the company's credit policies or collection procedures. However, it is essential to monitor DSO consistently to ensure that the efficiency of accounts receivable management is sustained in the long term.