Salesforce.com Inc (CRM)

Days of sales outstanding (DSO)

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Receivables turnover		3.18	3.05	2.90	2.89	2.83
DSO	days	114.69	119.48	125.77	126.22	129.02

January 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.18
= 114.69

The Days Sales Outstanding (DSO) metric for Salesforce.com Inc has shown a consistent downward trend over the past five years. As of January 31, 2021, the DSO stood at 129.02 days and decreased to 126.22 days as of January 31, 2022. This trend continued with further improvements in DSO, reaching 125.77 days by January 31, 2023, 119.48 days by January 31, 2024, and 114.69 days by January 31, 2025.

A declining DSO indicates that the company is collecting its accounts receivable more efficiently, enabling it to convert sales into cash at a faster rate. This could be a positive sign of effective credit control, timely collection efforts, and overall improved financial health. A lower DSO also suggests reduced credit risk and potentially better cash flow management for the company.