Dynatrace Holdings LLC (DT)

Days of sales outstanding (DSO)

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Receivables turnover		2.40	3.85	5.00	5.18	2.60	3.61	5.61	5.16	2.38	3.31	5.46	5.68	2.49	3.16	4.05	4.27	2.69
DSO	days	152.34	94.78	72.96	70.50	140.26	101.11	65.03	70.76	153.29	110.14	66.83	64.27	146.51	115.64	90.23	85.45	135.65

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.40
= 152.34

The Days Sales Outstanding (DSO) for Dynatrace Holdings LLC has shown fluctuations over the analyzed periods, indicating varying efficiency in collecting accounts receivable. DSO represents the average number of days a company takes to collect payments after making a sale.

The trend in DSO for Dynatrace Holdings LLC shows an upward trend from the end of 2019 through the first half of 2023, peaking in the first quarter of 2024 at 152.34 days. This prolonged collection period could imply potential difficulties in managing accounts receivable or customer payment delays, which might impact cash flow and working capital management negatively.

However, there are periods where DSO decreases noticeably, such as in the third quarter of 2022, suggesting improvements in collection efficiency during those quarters. Specifically, in the third quarter of 2022, DSO decreased to 65.03 days, reflecting a significant improvement in the company's ability to collect payments promptly.

Overall, Dynatrace Holdings LLC should focus on maintaining a consistent collection process to reduce DSO, ensure steady cash flows, and enhance financial health. Analyzing DSO alongside other liquidity and efficiency ratios can provide a comprehensive view of the company's financial performance.