Hewlett Packard Enterprise Co (HPE)
Days of sales outstanding (DSO)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.15 | 6.95 | 6.98 | 7.97 | 8.35 | |
| DSO | days | 88.00 | 52.53 | 52.27 | 45.80 | 43.71 |
October 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.15
= 88.00
To analyze the days of sales outstanding (DSO) for Hewlett Packard Enterprise Co, we look at the trend over the past five years. DSO measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is more efficient in collecting its accounts receivable.
From 2019 to 2023, the DSO for Hewlett Packard Enterprise Co has fluctuated, with a notable decrease in 2023 compared to the previous two years. This reduction suggests an improvement in the company's accounts receivable management and the efficiency of its collection process.
However, it's important to note that the DSO increased in 2022, which might indicate a slowdown in collecting payments compared to 2021. The decrease in 2023 could be a positive sign of a more streamlined collection process or a more efficient credit policy.
Overall, while there are fluctuations, the trend in 2023 shows an improvement in the DSO for Hewlett Packard Enterprise Co, indicating potential efficiency in managing its accounts receivable. It would be essential to monitor this metric in the upcoming periods to assess the sustainability of this improvement.
Peer comparison
Oct 31, 2023
See also:
Hewlett Packard Enterprise Co Average Receivable Collection Period