Gen Digital Inc. (GEN)

Days of sales outstanding (DSO)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Receivables turnover		11.31	11.47	18.04	11.98	9.54
DSO	days	32.27	31.82	20.23	30.48	38.26

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.31
= 32.27

The days of sales outstanding (DSO) for Gen Digital Inc. have fluctuated over the past five years. In the most recent fiscal year ending on March 31, 2024, the DSO was 32.27 days, showing a slight increase from the previous year's 31.82 days. However, compared to two years ago, the DSO has increased significantly from 20.23 days to 32.27 days. This indicates that on average, it took the company 32.27 days to collect its accounts receivable in the latest period.

The DSO metric is essential in evaluating how efficiently a company manages its accounts receivable. A lower DSO generally indicates that the company is collecting payments more quickly, which is positive as it improves cash flow. On the other hand, a higher DSO may suggest inefficiencies in collecting payments and potential liquidity challenges. Gen Digital Inc. should focus on improving its accounts receivable management to lower its DSO and enhance its overall financial health.