Hologic Inc (HOLX)
Days of sales outstanding (DSO)
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 5.65 | 5.90 | |
| DSO | days | 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 | 64.61 | 61.91 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.92
= 61.69
Days Sales Outstanding (DSO) is a liquidity metric that measures the average number of days it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable.
Looking at the trend of Hologic Inc's DSO over the last few quarters, we see some fluctuations. The DSO for December 2023 is 61.69 days, which is slightly higher compared to the previous quarter at 56.66 days. This uptick suggests that the company may be taking longer to collect payments from its customers during the period.
The DSO for September 2023 was at 56.66 days, showing an improvement compared to the DSO of 62.08 days in June 2023. The decreasing trend from June to September indicates that the company was able to collect payments more efficiently during that period.
However, there is missing data for March 2023, and this gap makes it challenging to analyze the full quarterly trend. It would be important to consider the reasons for this missing data and its potential impact on the overall DSO trend.
Looking further back, we observe a significant increase in DSO in March 2021 (83.22 days) and December 2020 (97.86 days), which could be a red flag indicating potential difficulties in collecting receivables during those periods.
Overall, monitoring the DSO trend of Hologic Inc can provide insights into its management of accounts receivable and its overall liquidity position. Investors and analysts should pay close attention to any significant changes in DSO, as it could indicate underlying operational or financial challenges.
Peer comparison
Dec 31, 2023