Walt Disney Company (DIS)

Days of sales outstanding (DSO)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Receivables turnover		7.18	7.21	6.54	5.04	5.15
DSO	days	50.85	50.62	55.83	72.37	70.94

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.18
= 50.85

The Days of Sales Outstanding (DSO) for Walt Disney Company has shown a fluctuating trend over the past five years. In the most recent fiscal year ending on September 30, 2024, the DSO stood at 50.85 days, which is slightly higher compared to the previous year's DSO of 50.62 days.

Looking back over the five-year period, the company experienced a notable decrease in DSO from 70.94 days in 2020 to 55.83 days in 2022. However, there was a significant spike in DSO in 2021, reaching 72.37 days, before seeing a decline in the following years.

A lower DSO indicates that the company is collecting its accounts receivable more efficiently, which is a positive sign of effective credit and collection policies. On the other hand, a higher DSO could suggest challenges in collecting payments from customers promptly.

It is important for Walt Disney Company to closely monitor its DSO to ensure efficient management of cash flows and working capital. By analyzing the DSO trend over time, the company can identify areas for improvement in its accounts receivable processes to maintain a healthy financial position.