Box Inc (BOX)

Days of sales outstanding (DSO)

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Receivables turnover		3.70	6.20	6.18	7.60	3.76	5.50	5.67	7.79	3.42	5.46	6.08	7.07	3.39	6.57	6.02	7.29	3.34	6.29	5.60	6.80
DSO	days	98.73	58.90	59.04	48.05	97.09	66.41	64.37	46.83	106.61	66.81	60.08	51.66	107.74	55.59	60.63	50.09	109.20	58.01	65.14	53.70

January 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.70
= 98.73

Box Inc's Days Sales Outstanding (DSO) measures the average number of days the company takes to collect revenue after making a sale. A lower DSO indicates faster collection of accounts receivable, which is generally favorable.

Analyzing the trend in Box Inc's DSO over the past quarters reveals fluctuations in the company's collection efficiency. In the most recent period, as of January 31, 2024, the DSO stood at 98.73 days, showing an increase compared to the previous quarter's 58.90 days. This significant rise suggests a potential delay in collecting payments from customers, which could impact cash flow and liquidity.

Looking further back, the DSO has exhibited variability, with peaks observed in the past, such as 106.61 days on January 31, 2022, and 107.74 days on January 31, 2021. These high DSO figures indicate historical challenges in timely collection of accounts receivable, potentially pointing to issues with credit policies, customer payment behavior, or invoicing processes.

Conversely, some periods have shown lower DSO figures, like the 46.83 days on April 30, 2022, and the 46.81 days on April 30, 2019. These periods reflect improved efficiency in collecting revenues and potentially more favorable working capital management.

Overall, Box Inc's DSO trend indicates variability in collection efficiency, with some quarters demonstrating better performance than others. Continuous monitoring and management of the DSO metric are crucial for the company to ensure a healthy cash flow and sustainable financial operations.