Broadcom Inc (AVGO)

Days of sales outstanding (DSO)

		Nov 3, 2024	Aug 4, 2024	May 5, 2024	Feb 4, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020
Receivables turnover		11.68	10.04	7.75	7.82	11.36	12.17	11.56	10.64	11.22	11.70	—	11.23	13.25	—	—	9.78	10.40	—	—	—
DSO	days	31.25	36.37	47.10	46.67	32.14	30.00	31.57	34.30	32.52	31.20	—	32.52	27.54	—	—	37.32	35.10	—	—	—

November 3, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.68
= 31.25

Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates faster collection of accounts receivable, which is generally preferable as it implies good liquidity and efficient credit management.

Based on the data provided for Broadcom Inc, the trend in DSO can be analyzed over multiple periods to understand the efficiency of the company's accounts receivable management.

From Nov 3, 2024, to Aug 4, 2024, DSO increased from 31.25 days to 36.37 days, suggesting a deterioration in the company's ability to collect revenue promptly. This increase continued from May 5, 2024, to Feb 4, 2024, where DSO further rose to 47.10 days, indicating potential issues with accounts receivable collections.

However, looking back to Oct 29, 2023, to Jul 30, 2023, we see a decrease in DSO from 32.14 days to 30.00 days, which is a positive sign of improved efficiency in collecting payments. The trend fluctuates but remains within a manageable range.

Analyzing specific dates can provide insights into the company's performance at various points in time. For instance, a DSO of 27.54 days on Jan 31, 2022, indicates strong account receivable management as the company was collecting revenue efficiently.

Overall, based on the available data, Broadcom Inc has experienced fluctuations in its DSO over the periods analyzed, suggesting varying levels of effectiveness in managing accounts receivable. Further monitoring and analysis of DSO trends are recommended to assess the company's financial health and efficiency in collecting revenue.