F5 Networks Inc (FFIV)

Days of sales outstanding (DSO)

		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	Mar 31, 2020	Dec 31, 2019
Receivables turnover		7.27	6.32	6.76	5.49	6.22	6.44	5.78	5.64	5.79	5.93	6.47	6.42	7.69	6.65	6.62	6.97	7.96	7.65	6.83	6.41
DSO	days	50.22	57.79	54.03	66.50	58.65	56.63	63.20	64.75	63.05	61.58	56.44	56.90	47.46	54.91	55.17	52.39	45.88	47.72	53.46	56.94

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.27
= 50.22

Days of Sales Outstanding (DSO) is a financial ratio that indicates the average number of days a company takes to collect revenue after making a sale. A lower DSO value suggests faster collection of accounts receivable, while a higher DSO value indicates slower collection.

Analyzing the DSO trend for F5 Networks Inc over the past few periods, we observe fluctuations in the collection efficiency of the company.

From December 2019 to March 2020, the DSO increased from 45.88 to 53.46 days, indicating a delay in collecting sales. However, this was followed by a significant improvement, with the DSO dropping to 47.72 days by June 2020 and further decreasing to 45.88 days by September 2020, suggesting more efficient collections.

Subsequently, there was a gradual increase in the DSO, reaching 64.75 days by December 2022, signifying a slower collection of accounts receivable. The trend continued to fluctuate in the subsequent periods with some periods showing improvement in collection efficiency (e.g., 47.46 days in December 2021) and others showing longer collection cycles (e.g., 66.50 days in December 2023).

Overall, the DSO trend indicates that F5 Networks Inc has experienced periods of both efficient and delayed collection of sales. It is important for the company to closely monitor its accounts receivable and collection processes to ensure timely and efficient cash inflows.