Gen Digital Inc. (GEN)

Days of sales outstanding (DSO)

		Mar 31, 2025	Dec 31, 2024	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
Receivables turnover		23.01	14.69	21.67	23.50	23.39	18.96	21.46	24.67	19.87	16.18	16.23	23.28	19.02	21.50	21.69	21.15	17.24	10.26	13.22	14.87
DSO	days	15.86	24.85	16.84	15.53	15.61	19.25	17.01	14.80	18.37	22.56	22.49	15.68	19.19	16.98	16.83	17.26	21.18	35.58	27.61	24.54

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 23.01
= 15.86

The Days Sales Outstanding (DSO) is an essential metric that indicates the average number of days it takes for a company to collect payment after making a sale. Analyzing the DSO trend of Gen Digital Inc. provides insight into the efficiency of the company's account receivables management.

From June 30, 2020, to March 31, 2025, Gen Digital Inc.'s DSO fluctuated within a range of 14.80 days to 35.58 days. The trend shows some variations, indicating changes in the company's credit policies, customer payment behaviors, or overall economic conditions.

Initially, the DSO declined from 24.54 days on June 30, 2020, to 16.83 days on September 30, 2021, suggesting efficient collections. However, there was a slight increase to 22.56 days by December 31, 2022.

The most notable improvement in collection efficiency occurred by June 30, 2024, where the DSO plummeted to 15.53 days from the peak of 24.85 days on December 31, 2024. This sharp decrease indicates a commendable effort in managing receivables efficiently.

Overall, Gen Digital Inc. showed a generally positive trend in DSO, with periodic fluctuations. Lower DSO values indicate better cash flow management and a faster conversion of sales into cash. Continuous monitoring and analysis of DSO is crucial for assessing the effectiveness of the company's credit and collection policies.