Bill Com Holdings Inc (BILL)

Days of sales outstanding (DSO)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Receivables turnover		29.89	24.72	17.87	11.53	37.01
DSO	days	12.21	14.77	20.43	31.65	9.86

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 29.89
= 12.21

Bill Com Holdings Inc's days of sales outstanding (DSO) is a metric that measures how long it takes for the company to collect payment from its customers after making a sale. By analyzing the DSO over the past five years, we can gain insights into the company's efficiency in managing its accounts receivable.

The DSO trend for Bill Com Holdings Inc shows fluctuation over the five-year period. In June 2020, the DSO was at a low of 9.86 days, indicating that the company was efficient in collecting payments from customers. However, by June 2021, the DSO had increased significantly to 31.65 days, suggesting that the company may have faced challenges in collecting payments promptly.

In the following years, the DSO improved, reaching 20.43 days in June 2022, 14.77 days in June 2023, and further decreasing to 12.21 days by June 2024. These declining DSO figures indicate that Bill Com Holdings Inc has become more effective in managing its accounts receivable and collecting payments in a timelier manner.

Overall, the trend in Bill Com Holdings Inc's DSO suggests that the company has made progress in optimizing its accounts receivable management and improving its cash flow efficiency over the five-year period. Efforts to reduce DSO can positively impact the company's working capital and overall financial health.