Cisco Systems Inc (CSCO)

Days of sales outstanding (DSO)

		Jul 27, 2024	Apr 27, 2024	Jan 27, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 23, 2021	Oct 24, 2020	Jul 25, 2020	Apr 25, 2020	Jan 25, 2020	Oct 26, 2019
Receivables turnover		5.37	6.39	6.80	6.99	6.13	6.42	6.04	5.71	4.89	5.36	5.15	5.40	4.90	—	5.13	5.27	4.66	5.43	5.58	5.20
DSO	days	67.92	57.16	53.67	52.18	59.58	56.83	60.45	63.96	74.63	68.04	70.93	67.53	74.53	—	71.12	69.23	78.32	67.26	65.43	70.26

July 27, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.37
= 67.92

Days Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO value reflects a faster collection process and efficient management of accounts receivable.

Analyzing the DSO trend for Cisco Systems Inc over the provided periods shows fluctuations in the collection efficiency. The DSO values range from a low of 52.18 days to a high of 78.32 days, with the most recent DSO standing at 67.92 days as of July 27, 2024.

The trend indicates some variability in the company's ability to collect payments from customers promptly. A decreasing DSO trend over time would generally be favorable, as it would suggest improved collections management and liquidity. On the other hand, an increasing trend could indicate potential liquidity challenges or ineffective credit policies.

Overall, for Cisco Systems Inc, maintaining a stable or decreasing DSO trend would be indicative of efficient accounts receivable management and strong cash flow. Continued monitoring of this ratio will be crucial for assessing the company's financial health and operational performance.