F5 Networks Inc (FFIV)

Days of sales outstanding (DSO)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Receivables turnover		7.25	6.22	5.78	7.68	7.97
DSO	days	50.31	58.71	63.13	47.51	45.79

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.25
= 50.31

The days of sales outstanding (DSO) for F5 Networks Inc have exhibited fluctuations over the past five years. In fiscal year 2024, the DSO decreased to 50.31 days from 58.71 days in the previous year, indicating an improvement in the company's efficiency in collecting receivables from customers.

Compared to fiscal year 2022, where DSO was 63.13 days, the current DSO reflects a significant reduction, suggesting a more streamlined accounts receivable collection process. In fiscal year 2021 and 2020, the company also demonstrated better performance in collecting payments from customers with 47.51 days and 45.79 days of DSO, respectively.

Overall, the downward trend in DSO over the years implies that F5 Networks Inc has been managing its accounts receivable effectively, translating into improved liquidity and potentially lower credit risk. However, ongoing monitoring of DSO is crucial to ensure the company maintains efficient cash flow management and healthy working capital levels.