DXC Technology Co (DXC)

Days of sales outstanding (DSO)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Receivables turnover		4.20	4.19	4.22	4.27	4.46
DSO	days	86.88	87.04	86.49	85.56	81.89

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.20
= 86.88

The Days Sales Outstanding (DSO) for DXC Technology Co over the past five years have shown a relatively stable trend, fluctuating between 81.89 days and 87.04 days. This metric indicates the average number of days it takes for the company to collect its accounts receivable from customers.

In analyzing the DSO trend, we observe a slight uptick from 2020 to 2021, followed by a relatively consistent performance in the subsequent years. Generally, a lower DSO is preferable as it signifies faster cash conversion and efficient management of accounts receivable. However, it's essential to consider the nature of the industry and customer payment terms when evaluating DSO.

DXC Technology Co should continue monitoring and managing its DSO to ensure efficient cash flow and timely collection of receivables. Additional analysis and comparison with industry peers can provide further insights into the company's effectiveness in credit and collection practices.