CommVault Systems Inc (CVLT)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.77 | 3.73 | 3.96 | 3.85 | 4.56 | |
| DSO | days | 96.85 | 97.90 | 92.12 | 94.91 | 79.97 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.77
= 96.85
CommVault Systems Inc's Days of Sales Outstanding (DSO) measure indicates the average number of days it takes for the company to collect revenue from its sales. From 2020 to 2024, the trend in DSO has shown some variability. In 2020, the company had a DSO of 79.97 days, which increased to 94.91 days in 2021 before peaking at 97.9 days in 2023. However, in 2024, there was a slight improvement in DSO to 96.85 days.
A higher DSO value suggests that CommVault Systems Inc takes longer to collect payments from customers, which can indicate potential cash flow issues or difficulties in managing accounts receivable. On the other hand, a lower DSO value indicates more efficient collection practices, which can have a positive impact on the company's cash flow and overall financial health.
It is essential for the company to monitor and manage its DSO effectively to ensure timely collection of receivables and maintain a healthy cash flow position. Further analysis and comparison with industry benchmarks can provide valuable insights into the company's performance in managing its accounts receivable effectively.
Peer comparison
Mar 31, 2024