Digi International Inc (DGII)

Days of sales outstanding (DSO)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Receivables turnover		6.09	7.94	7.70	7.06	4.72
DSO	days	59.94	45.95	47.43	51.73	77.41

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.09
= 59.94

Digi International Inc's Days Sales Outstanding (DSO) has shown a varying trend over the past five years. In the most recent fiscal year ending on September 30, 2024, the DSO stands at 59.94 days, indicating that on average, it takes the company about 59.94 days to collect revenue from its sales.

Comparing this to the previous years, there has been an increase in DSO from 45.95 days in 2023 to 59.94 days in 2024. This rise may suggest potential challenges in collecting receivables promptly or changes in the company's credit policies.

When looking back further, Digi International Inc has shown fluctuations in its DSO. In 2021, the DSO was 51.73 days, indicating an improvement from the previous year, while in 2020, the DSO was relatively high at 77.41 days, suggesting a longer time taken to collect receivables.

Overall, monitoring and managing DSO effectively is crucial for assessing the company's liquidity and efficiency in collecting receivables. The recent increase in DSO for Digi International Inc may warrant further investigation into factors affecting the collection process and potential impacts on the company's cash flow and working capital management.