Salesforce.com Inc (CRM)

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		3.05	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	2.83	6.30	6.41	6.65
DSO	days	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	129.00	57.90	56.93	54.93

January 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.05
= 119.48

The days of sales outstanding (DSO) ratio for Salesforce Inc has shown fluctuations over the past eight quarters. The DSO was significantly high in Q4 2023 at 125.21 days, indicating that it took the company over four months to collect its accounts receivable. This was followed by a sharp decrease in Q1 2024 to 52.53 days, suggesting improved efficiency in collecting receivables.

However, in Q4 2024, the DSO increased again to 119.52 days, which could be a cause for concern as it indicates a slowdown in the collection of accounts receivable. The company saw a similar trend in Q2 2024 and Q3 2023, with DSO values exceeding 50 days.

Overall, Salesforce Inc should focus on managing its accounts receivable effectively to ensure timely collection and maintain a healthy cash flow position. It is important for the company to closely monitor and address any increases in DSO to optimize its working capital management.