Hologic Inc (HOLX)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.44 | 7.62 | 5.97 | 3.67 | 5.19 | |
| DSO | days | 56.66 | 47.90 | 61.09 | 99.45 | 70.32 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.44
= 56.66
To analyze Hologic, Inc.'s days of sales outstanding (DSO) over the past five years, we calculate the average DSO for the period.
For the five-year period from 2019 to 2023, the average DSO for Hologic, Inc. was approximately 65.23 days. The DSO measures the average number of days it takes a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from its customers more quickly, which is generally a positive indicator.
Comparing the DSO across the five-year period, there was a noticeable decrease from 2019 to 2022, where the DSO decreased from 63.58 days to 46.36 days. However, in 2023, the DSO increased to 56.66 days. Although the DSO increased in 2023 compared to 2022, it remained lower than in 2019 and 2021, indicating moderately effective accounts receivable management.
It is essential to consider industry benchmarks and company-specific factors when interpreting changes in DSO. A lower DSO may signify efficient credit and collections management, while a higher DSO could indicate potential issues with collecting receivables in a timely manner.
Overall, while Hologic, Inc.'s DSO increased in 2023 compared to 2022, the company has demonstrated relatively effective management of its accounts receivable over the five-year period.
Peer comparison
Sep 30, 2023