CommVault Systems Inc (CVLT)

Days of sales outstanding (DSO)

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Receivables turnover		3.77	3.66	4.06	4.45	3.73	3.65	4.67	4.32	3.96	3.54	4.45	4.62	3.85	3.66	4.93	4.55	4.56	4.25	5.45	5.06
DSO	days	96.85	99.65	89.88	82.10	97.90	99.96	78.21	84.51	92.12	103.00	81.95	79.01	94.91	99.86	74.02	80.20	79.97	85.80	66.96	72.07

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.77
= 96.85

The Days Sales Outstanding (DSO) ratio for CommVault Systems Inc has fluctuated over the past few quarters. DSO measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO typically indicates faster collections and better cash flow management.

From the data provided, we observe that the DSO for CommVault Systems Inc ranged from a low of 66.96 days to a high of 103.00 days over the past eight quarters. Specifically, there was a notable increase in DSO from the fourth quarter of 2021 to the first quarter of 2022, followed by a decrease in the second and third quarters of 2022.

The trend continued with fluctuations in DSO through the end of 2023, with values ranging from around 74 to 99 days. It is essential for the company to monitor and effectively manage its DSO, as a higher DSO may indicate inefficiencies in collecting accounts receivable, impacting cash flow and liquidity.

Overall, a comparative analysis of CommVault Systems Inc’s DSO over time highlights the importance of closely monitoring and managing receivables to ensure efficient cash conversion and financial stability.