Dell Technologies Inc (DELL)

Days of sales outstanding (DSO)

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Receivables turnover		19.04	5.64	5.58	4.83	4.88
DSO	days	19.17	64.73	65.40	75.56	74.79

February 2, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 19.04
= 19.17

Dell Technologies Inc has shown a significant improvement in its Days of Sales Outstanding (DSO) metric over the past five years. The DSO decreased from 75.56 days in 2021 to 19.17 days in 2024. This suggests that the company is collecting its accounts receivable more efficiently and faster than in previous years.

The substantial decline in DSO indicates that Dell Technologies Inc has been managing its accounts receivable more effectively, potentially through improved credit policies, enhanced collection processes, or better customer credit evaluation. A lower DSO typically signifies that the company is converting its sales into cash quicker, improving liquidity and overall financial health.

Overall, the decreasing trend in DSO for Dell Technologies Inc reflects positively on its financial management and operational efficiency in managing its receivables, contributing to a stronger cash flow position.