Home Depot Inc (HD)
Days of sales outstanding (DSO)
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | 45.87 | — | 47.45 | |
| DSO | days | — | — | 7.96 | — | 7.69 |
January 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Based on the data provided, Home Depot Inc's Days Sales Outstanding (DSO) was 7.69 days as of January 29, 2023, and increased slightly to 7.96 days as of January 28, 2024. The absence of data for January 31 in 2023, 2024, and 2025 indicates that the DSO was not reported on those dates.
The DSO ratio is a measure of how efficient a company is at collecting receivables from customers. A lower DSO is typically favorable as it indicates that the company is able to collect payments from customers more quickly. In the case of Home Depot Inc, the DSO of around 7-8 days suggests that the company is efficient in collecting payments from its customers.
It is important for Home Depot Inc to monitor its DSO over time to ensure that it remains consistent or improves, as an increase in DSO could indicate potential issues with credit management or customer payment delays. Additionally, comparing DSO to industry benchmarks can provide further insights into Home Depot Inc's performance in managing its receivables.
Peer comparison
Jan 31, 2025