Cisco Systems Inc (CSCO)

Days of sales outstanding (DSO)

		Jul 31, 2025	Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023
Receivables turnover		5.80	5.37	5.37	6.19	6.13
DSO	days	62.89	68.00	67.92	58.95	59.58

July 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.80
= 62.89

The Days Sales Outstanding (DSO) for Cisco Systems Inc. exhibits notable fluctuations over the analyzed period, reflecting variations in the company's collection efficiency and receivables management strategies.

As of July 29, 2023, the DSO was approximately 59.58 days, indicating that, on average, the company took about 59.6 days to collect receivables. Slight variations are observed in the subsequent days: on July 31, 2023, the DSO decreased slightly to 58.95 days, a marginal improvement in collection efficiency.

However, a significant increase in DSO is evident by July 27, 2024, reaching approximately 67.92 days. This upward trend continues, with the DSO slightly rising to 68.00 days by July 31, 2024. The increase suggests that during this period, Cisco experienced a slowdown in its receivable collections, possibly due to changes in credit policies, customer payment behaviors, or other operational factors affecting receivables turnover.

Looking forward to July 31, 2025, the DSO decreases to approximately 62.89 days, indicating an improvement relative to the 2024 figures but still higher than the 2023 levels. This reduction suggests some amelioration in collection periods, although the DSO remains elevated compared to earlier periods.

In summary, Cisco's DSO data over the specified periods indicates a period of rising receivable collection days peaking around mid-2024, followed by a partial recovery. These fluctuations may impact the company's cash flow timing and working capital management. Continuous monitoring and further analysis could help ascertain the underlying causes and the implications for operational efficiency and liquidity management.