Cisco Systems Inc (CSCO)

Days of sales outstanding (DSO)

		Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023	Jul 31, 2022
Receivables turnover		—	5.37	—	6.13	—
DSO	days	—	67.92	—	59.58	—

July 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

Days Sales Outstanding (DSO) is a key financial metric that indicates the average number of days it takes for a company to collect payments from its customers after making a sale. In the case of Cisco Systems Inc, the DSO for July 29, 2023, was 59.58 days, and for July 27, 2024, it increased to 67.92 days.

A lower DSO indicates that the company is able to collect payments from customers more quickly, which can improve cash flow and working capital management. On the other hand, a higher DSO may suggest inefficiencies in the company's accounts receivable processes or potential issues with customer creditworthiness.

It is important for Cisco Systems Inc to monitor its DSO closely to ensure that it maintains a balance between timely collections and maintaining strong customer relationships. By effectively managing its DSO, the company can optimize its cash flow and overall financial performance.