DocuSign Inc (DOCU)

Days of sales outstanding (DSO)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020
Receivables turnover		6.93	9.69	9.21	9.16	6.27	7.50	6.38	6.32	4.85	5.75	6.86	7.38	4.76	6.26	6.13	6.26	4.30	4.85	5.04	4.65
DSO	days	52.68	37.67	39.62	39.84	58.20	48.69	57.18	57.77	75.18	63.46	53.17	49.46	76.61	58.31	59.59	58.27	84.94	75.30	72.35	78.45

January 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.93
= 52.68

DocuSign Inc's Days Sales Outstanding (DSO) is a measure of how long it takes for the company to collect payments from its customers after making a sale. A lower DSO indicates that the company is efficient in collecting payments, while a higher DSO may suggest potential issues with receivables management.

Analyzing the trend of DocuSign's DSO over time reveals fluctuations in the collection period. From April 30, 2020, to April 30, 2024, DSO has shown a decreasing trend overall, starting at 78.45 days and declining to 39.84 days. This indicates an improvement in the company's efficiency in collecting payments from customers.

There are periods of variability within the trend, such as an increase in DSO from January 31, 2021, to April 30, 2021, which could suggest challenges in receivables management during that period. However, the subsequent decrease in DSO from April 30, 2021, to October 31, 2024, reflects better collection practices.

The lowest DSO recorded was 37.67 days on October 31, 2024, indicating a significant improvement in collections efficiency. However, it is essential for DocuSign Inc to monitor and manage DSO continuously to ensure timely collection of receivables and maintain healthy cash flow levels.