Home Depot Inc (HD)

Days of sales outstanding (DSO)

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Receivables turnover		45.87	39.09	40.37	36.97	47.45	42.15	41.67	—	44.12	41.81	—	—	44.15	—	—	—	—	—	—	—
DSO	days	7.96	9.34	9.04	9.87	7.69	8.66	8.76	—	8.27	8.73	—	—	8.27	—	—	—	—	—	—	—

January 28, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 45.87
= 7.96

The days of sales outstanding (DSO) for Home Depot Inc has shown fluctuations over the past few quarters. From the data provided, we can see that the DSO varied between 7.69 days to 9.87 days over the last few quarters.

In general, a lower DSO indicates quicker collection of accounts receivable and better liquidity management, while a higher DSO may suggest that the company is taking longer to collect payments from customers, which could impact cash flow and working capital.

Home Depot Inc has managed to keep its DSO within a fairly narrow range, which indicates efficient management of accounts receivable. The slight fluctuations in DSO could be due to seasonal factors or changes in the company's credit policies.

Overall, by consistently monitoring and potentially improving its DSO, Home Depot Inc can optimize its cash flow, working capital management, and overall financial performance.