Salesforce.com Inc (CRM)

Days of sales outstanding (DSO)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Receivables turnover		3.18	7.85	6.77	8.38	3.05	6.95	6.07	6.90	2.90	7.11	6.32	7.40	2.89	6.71	6.13	7.31	2.83	6.26	5.80	6.08
DSO	days	114.69	46.50	53.91	43.55	119.48	52.51	60.15	52.89	125.77	51.35	57.72	49.31	126.37	54.37	59.51	49.94	129.02	58.31	62.97	60.03

January 31, 2025 calculation

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

Based on the data provided, the Days Sales Outstanding (DSO) for Salesforce.com Inc fluctuated over the period from April 30, 2020, to January 31, 2025. DSO measures how long it takes for a company to collect payments from its customers after making a sale.

The trend in Salesforce.com Inc's DSO indicates varying efficiency in collecting accounts receivable. The company's DSO was 60.03 days on April 30, 2020, increased to 129.02 days on January 31, 2021, which might be a cause for concern as it indicates a delay in collecting revenue.

However, the DSO improved to 49.31 days on April 30, 2022, suggesting a more efficient collection process. The DSO continued to fluctuate over the subsequent periods but generally remained below the extended payment terms.

It's worth noting that a lower DSO is generally preferred as it indicates that the company is collecting payments faster. A high DSO can signal potential liquidity issues or problems with customers' creditworthiness.

Overall, monitoring the trend in DSO for Salesforce.com Inc can provide insights into the company's financial health, efficiency in managing accounts receivable, and potential cash flow issues.