Avnet Inc (AVT)
Days of sales outstanding (DSO)
Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
---|---|---|---|---|---|---|
Receivables turnover | 5.13 | 5.41 | 5.57 | 5.65 | 5.46 | |
DSO | days | 71.15 | 67.47 | 65.52 | 64.58 | 66.82 |
June 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.13
= 71.15
The analysis of Avnet Inc’s days of sales outstanding (DSO) over the specified period reveals a gradual upward trend in the metric. As of June 30, 2021, the DSO was 66.82 days, indicating that on average, the company took approximately 67 days to collect receivables. By June 30, 2022, this figure slightly decreased to 64.58 days, suggesting a marginal improvement in the efficiency of receivables collection during that year. However, the DSO increased again by June 30, 2023, reaching 65.52 days, which shows a stabilization but not a significant change from previous levels.
From June 30, 2024, onward, a notable increase in DSO is observed, with the figure rising to 67.47 days – slightly above the levels recorded in prior years. The upward trajectory continues into the projected period ending June 30, 2025, when the DSO is estimated at 71.15 days, representing an increase of approximately 4 days from the previous year.
This progression indicates that Avnet Inc has experienced a gradual extension in the average collection period over the four-year span, culminating in a projected increase to over 71 days. Such an increase in DSO signifies that the company may be facing challenges related to receivables collection efficiency or experiencing intentional leniency in credit policies. An extended DSO can impact cash flow by delaying liquidity realization, and if sustained, may warrant management attention on credit and collection strategies to improve working capital management.
Peer comparison
Jun 30, 2025