Digi International Inc (DGII)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.94 | 7.70 | 7.06 | 4.72 | 4.51 | |
| DSO | days | 45.95 | 47.43 | 51.73 | 77.41 | 81.01 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.94
= 45.95
To analyze the days of sales outstanding (DSO) for Digi International, Inc., we can see a consistent improvement in DSO over the past five years. The trend indicates that the company has been able to collect its accounts receivable more efficiently, with a decreasing number of days required to collect sales from customers.
In 2019, Digi International had a DSO of 81.01 days, which decreased to 77.41 days in 2020. This trend continued with further improvement, reaching 51.73 days in 2021 and 47.43 days in 2022. As of September 30, 2023, the company's DSO further decreased to 45.95 days.
A decline in DSO signifies that the company is collecting its receivables at a faster rate, indicating effective credit and collection policies. Digi International's ability to efficiently manage its accounts receivable is a positive indicator of its liquidity and overall financial health.
Peer comparison
Sep 30, 2023