DXC Technology Co (DXC)

Days of sales outstanding (DSO)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Receivables turnover		4.33	4.20	4.19	4.22	4.27
DSO	days	84.28	86.88	87.04	86.49	85.56

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.33
= 84.28

Based on the data provided, DXC Technology Co's days of sales outstanding (DSO) have shown a slight upward trend over the past five years. The DSO increased from 85.56 days as of March 31, 2021, to 86.49 days as of March 31, 2022, and further rose to 87.04 days as of March 31, 2023. However, there was a slight improvement in DSO to 86.88 days as of March 31, 2024, before decreasing to 84.28 days as of March 31, 2025.

A higher DSO indicates that the company is taking longer to collect its accounts receivable, which could potentially lead to cash flow issues or inefficiencies in working capital management. Conversely, a lower DSO suggests that the company is collecting payments more quickly, potentially improving its liquidity position.

It is important for DXC Technology Co to effectively manage its DSO to ensure timely collection of receivables and maintain optimal cash flow levels. Monitoring and analyzing DSO trends can provide valuable insights into the company's credit and collection policies, as well as its overall financial health.