Hologic Inc (HOLX)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.71 | 6.44 | 7.62 | 5.97 | 3.67 | |
| DSO | days | 54.37 | 56.66 | 47.90 | 61.09 | 99.45 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.71
= 54.37
Based on the data provided, Hologic Inc has shown fluctuations in its days of sales outstanding (DSO) over the past five years. In 2024, the DSO decreased to 54.37 days from 56.66 days in 2023, indicating an improvement in the company's ability to collect its accounts receivable efficiently. This reduction in DSO suggests that the company is managing its receivables more effectively in the current year.
Comparing the DSO to previous years, there was a notable improvement from 2020 to 2021 where the DSO decreased significantly from 99.45 days to 61.09 days, reflecting a better collection process. However, in 2022, there was a further improvement with the DSO dropping to 47.90 days, indicating an even more efficient collection period.
Overall, the trend in Hologic Inc's DSO over the past five years shows a positive direction in managing accounts receivable and collecting sales revenue. It is essential for the company to continue monitoring and improving this ratio to ensure effective cash flow management and enhance its overall financial performance.
Peer comparison
Sep 30, 2024