Home Depot Inc (HD)

Days of sales outstanding (DSO)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Apr 30, 2022	Jan 31, 2022	Jan 30, 2022
Receivables turnover		—	—	—	—	—	46.01	—	40.89	—	39.58	—	—	47.44	—	43.00	—	—	—	—	45.18
DSO	days	—	—	—	—	—	7.93	—	8.93	—	9.22	—	—	7.69	—	8.49	—	—	—	—	8.08

January 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

The days of sales outstanding (DSO) for Home Depot Inc have shown fluctuations over the periods indicated. In January 2022, the DSO stood at 8.08 days, representing the average number of days it takes for the company to collect revenue after a sale. Subsequently, data points are missing for January, April, and July 2022.

By October 2022, the DSO increased slightly to 8.49 days, signifying a potential delay in the collection of sales revenue. Moving into January 2023, the DSO decreased to 7.69 days, indicating an improvement in the company's collection efficiency.

The data for the following periods remains missing until July 2023, where the DSO spikes to 9.22 days, suggesting a longer collection period. By October 2023, the DSO decreases to 8.93 days, which is slightly lower compared to the previous quarter.

In January 2024, the DSO further reduces to 7.93 days, indicating a positive trend in collecting sales revenue more promptly. However, data points are missing for the subsequent periods up to January 2025, making it challenging to assess any further developments in the company's collection efficiency.

Overall, fluctuations in Home Depot Inc's DSO reflect changes in its revenue collection practices and efficiency. A decreasing trend in DSO typically signifies improved liquidity and effective accounts receivable management, while an increasing trend may raise concerns about the company's cash flow and working capital management.