DXC Technology Co (DXC)

Days of sales outstanding (DSO)

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Receivables turnover		4.33	4.74	4.27	4.49	4.20	4.43	4.46	4.31	4.19	4.30	4.43	4.29	4.22	4.53	4.41	4.26	4.27	4.40	4.50	4.49
DSO	days	84.28	76.94	85.43	81.26	86.88	82.41	81.79	84.62	87.04	84.91	82.33	85.15	86.49	80.49	82.81	85.76	85.56	83.01	81.03	81.24

March 31, 2025 calculation

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

The days of sales outstanding (DSO) for DXC Technology Co over the reported periods have shown fluctuations. DSO represents the average number of days it takes for a company to collect payment after making a sale.

From June 30, 2020, to March 31, 2025, the DSO ranged from a low of 76.94 days on December 31, 2024, to a high of 87.04 days on March 31, 2023. A decreasing trend was observed from December 31, 2024, to September 30, 2021, with DSO decreasing from 76.94 days to 80.49 days.

Following this, there was some fluctuation in DSO until March 31, 2024, when it reached 86.88 days. However, there was a decrease in DSO as of June 30, 2024 (81.26 days), before showing an upward trend again on September 30, 2024 (85.43 days).

The DSO metric indicates the efficiency of DXC Technology Co in managing its accounts receivables. A lower DSO is generally preferable as it signifies that the company collects payments faster, improving cash flow and liquidity. Conversely, a higher DSO may indicate potential issues with collections or credit policies.

Overall, DXC Technology Co should strive to monitor and manage its DSO effectively to ensure timely collection of receivables and efficient working capital management.