Broadcom Inc (AVGO)

Days of sales outstanding (DSO)

		Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019
Receivables turnover		11.36	11.22	13.25	10.40	6.93
DSO	days	32.14	32.52	27.54	35.10	52.64

October 29, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.36
= 32.14

To analyze the trend in Broadcom Inc's days of sales outstanding (DSO), we will examine the DSO ratios over the past five years. DSO measures the average number of days it takes for a company to collect payment after a sale is made.

In 2023, the DSO was 32.14 days, showing a slight improvement from the previous year's 32.52 days. The decrease in DSO indicates that the company was able to collect payments more efficiently in 2023 compared to 2022.

Looking at the trend over the past five years, we observe that the DSO was 27.54 days in 2021, a decline from 35.10 days in 2020 and a significant improvement over the 52.64 days recorded in 2019. This decrease in DSO from 2019 to 2021 suggests that Broadcom Inc has been more effective in managing its accounts receivable and collecting payments from customers in a timelier manner.

Overall, the trend in the DSO ratio indicates an improvement in the company's ability to convert its sales into cash over the past five years, reflecting positively on Broadcom Inc's working capital management and liquidity.