Estee Lauder Companies Inc (EL)

Days of sales outstanding (DSO)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Receivables turnover		8.86	10.81	10.77	9.40	11.86
DSO	days	41.21	33.76	33.88	38.81	30.77

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.86
= 41.21

Estee Lauder Companies Inc's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect its accounts receivable. The trend in DSO over the past five years shows some fluctuation.

In 2020, the DSO was at its lowest point at 30.77 days, suggesting that the company was efficient in collecting payments from customers. However, in 2021, the DSO increased to 38.81 days, indicating a potential delay in collecting receivables compared to the previous year.

The DSO decreased in 2022 to 33.88 days but increased slightly in 2023 to 33.76 days. The most recent data for 2024 shows a significant increase in DSO to 41.21 days. This upturn could indicate a slowdown in receivables collection efficiency, possibly due to changes in customer payment behavior or credit terms.

Overall, Estee Lauder Companies Inc should monitor and manage its DSO effectively to ensure timely collection of receivables and maintain healthy cash flow levels. Analyzing the reasons behind fluctuations in DSO can help identify potential operational or financial issues that may impact the company's liquidity and overall financial health.