Applied Materials Inc (AMAT)

Days of sales outstanding (DSO)

		Oct 31, 2024	Oct 27, 2024	Oct 31, 2023	Oct 29, 2023	Oct 31, 2022
Receivables turnover		—	5.08	—	4.71	—
DSO	days	—	71.91	—	77.48	—

October 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

The Days of Sales Outstanding (DSO) is an important metric that measures the average number of days it takes a company to collect revenue after making a sale.

Based on the data provided for Applied Materials Inc:

- As of October 29, 2023, the DSO was 77.48 days, indicating that it took the company an average of 77.48 days to collect revenue from its sales.
- By October 27, 2024, the DSO decreased to 71.91 days, suggesting an improvement in the company's efficiency in collecting revenue.

The missing data points for DSO on October 31, 2022, and October 31, 2023, make it challenging to provide a complete trend analysis over the specified period. However, the observed decrease in DSO from 2023 to 2024 indicates a positive trend towards faster revenue collection, which is generally favorable for a company's cash flow management.

Overall, monitoring DSO trends over time can provide insights into a company's effectiveness in managing accounts receivable and cash flow.