DXC Technology Co (DXC)

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		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	4.46	4.34	4.38	3.89
DSO	days	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	81.89	84.12	83.32	93.83

March 31, 2024 calculation

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

Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company collects its accounts receivable. A lower DSO indicates that the company is collecting payments faster, which is generally favorable as it implies better cash flow management.

Looking at the historical trend of DXC Technology Co's DSO from December 2019 to March 2024, we observe fluctuations in the DSO figure. The DSO has ranged from a low of 80.49 days in December 2021 to a high of 93.83 days in September 2019. In the most recent period ending in March 2024, the DSO stood at 86.88 days.

The upward trend in DSO over the past few quarters suggests that DXC Technology Co may be taking longer to collect payments from its customers, which could potentially impact its cash flow and working capital management. It is important for the company to analyze the reasons behind this trend and identify areas for improvement in its accounts receivable processes.

Overall, monitoring DSO trends can provide valuable insights into the efficiency of a company's credit and collection policies, thereby helping investors and stakeholders assess the company's financial health and liquidity position.