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.
Peer comparison
Jul 31, 2024