Broadcom Inc (AVGO)

Days of sales outstanding (DSO)

		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	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Receivables turnover		7.82	11.36	12.17	11.56	10.64	11.22	11.70	—	11.23	13.25	—	—	9.78	10.40	—	—	—	—	—	—
DSO	days	46.67	32.14	30.00	31.57	34.30	32.52	31.20	—	32.52	27.54	—	—	37.32	35.10	—	—	—	—	—	—

February 4, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.82
= 46.67

Broadcom Inc's Days Sales Outstanding (DSO) provides insight into the average number of days it takes for the company to collect payments from its customers after making a sale. The trend analysis of DSO over the past several quarters indicates the efficiency of the company's accounts receivable management.

Looking at the data, we observe fluctuations in Broadcom's DSO over time. The DSO figures ranged from 27.54 days to 46.67 days, with some quarters showing a consistent DSO figure while others displaying variability.

A lower DSO indicates that the company is collecting payments more quickly, which can result in improved cash flows and working capital management. Conversely, a higher DSO may suggest potential issues with collections or credit policies.

It is essential for Broadcom to closely monitor its DSO trend to ensure efficient receivables management and timely collection of payments. Analyzing the reasons behind DSO fluctuations and implementing strategies to improve collection efforts can help optimize the company's cash flow and overall financial performance.