FedEx Corporation (FDX)
Days of sales outstanding (DSO)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.62 | 8.78 | 7.82 | 6.86 | 6.79 | |
| DSO | days | 42.34 | 41.57 | 46.65 | 53.22 | 53.79 |
May 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.62
= 42.34
From the data provided, we can observe that FedEx Corporation's Days of Sales Outstanding (DSO) have shown a decreasing trend over the past five years. In particular:
- The DSO was 42.34 days as of May 31, 2024, showing a slight increase compared to the previous year.
- In May 2023, the DSO was 41.57 days, reflecting a slight decrease from the prior year.
- The DSO was 46.65 days as of May 31, 2022, indicating a decrease from the previous year.
- In May 2021, the DSO stood at 53.22 days, showing a notable decrease compared to the prior year.
- Lastly, in May 2020, the DSO was 53.79 days, demonstrating a slight decrease from the previous year.
Overall, the decreasing trend in DSO over the five-year period suggests that FedEx Corporation has been improving its efficiency in collecting accounts receivable, which could positively impact its cash flow management and liquidity position. This trend indicates that the company has been more effective in converting its sales into cash and managing its working capital efficiently.