Hologic Inc (HOLX)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.71 | 6.12 | 5.92 | 6.44 | 5.88 | — | 6.43 | 7.62 | 7.22 | 6.35 | 5.20 | 5.97 | 6.00 | 4.39 | 3.73 | 3.67 | 4.53 | 5.57 | 5.82 | 5.19 | |
| DSO | days | 54.37 | 59.64 | 61.69 | 56.66 | 62.08 | — | 56.75 | 47.90 | 50.52 | 57.52 | 70.23 | 61.09 | 60.80 | 83.22 | 97.86 | 99.44 | 80.64 | 65.56 | 62.70 | 70.32 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.71
= 54.37
The Days Sales Outstanding (DSO) ratio measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates that a company is collecting payments from customers more quickly, which is typically seen as positive.
Analyzing Hologic Inc's DSO over the past few quarters, we observe fluctuations in the metric. In the most recent period, as of September 30, 2024, the DSO stands at 54.37 days, showing an improvement from the previous quarter's 59.64 days. This suggests that Hologic Inc has been able to collect revenue from its sales more efficiently.
Looking further back, there are signs of variability in DSO, which can be influenced by the company's sales policies, collection efforts, and the nature of its customer base. The DSO trend indicates that Hologic Inc has been making efforts to manage its account receivables effectively and improve cash flow.
Overall, a decreasing trend in DSO is generally a positive signal, as it implies that the company is managing its receivables well. Investors and stakeholders may closely monitor DSO over time to assess Hologic Inc's effectiveness in collecting payments from customers and maintaining healthy liquidity levels.
Peer comparison
Sep 30, 2024