Hewlett Packard Enterprise Co (HPE)
Days of sales outstanding (DSO)
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.79 | 4.15 | 4.14 | 3.99 | 3.70 | 6.95 | 4.01 | 4.12 | 3.85 | 6.98 | 3.89 | 4.06 | 3.94 | 7.97 | 4.06 | 4.39 | 4.42 | 8.35 | 8.28 | 7.43 | |
| DSO | days | 96.32 | 88.00 | 88.20 | 91.57 | 98.60 | 52.53 | 90.98 | 88.58 | 94.77 | 52.27 | 93.91 | 89.82 | 92.60 | 45.80 | 89.98 | 83.15 | 82.58 | 43.71 | 44.07 | 49.13 |
January 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.79
= 96.32
Days Sales Outstanding (DSO) measures the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO indicates better efficiency in collecting cash from customers, while a higher DSO may signify potential issues with receivables management.
Analyzing Hewlett Packard Enterprise Co's DSO over the past eight quarters, we observe fluctuations in the metric. In Q1 2024, the DSO stood at 49.15 days, which increased from the previous quarter's value of 43.61 days. This rise in DSO suggests that the company took longer to collect revenue from sales in the most recent quarter.
Comparing Q1 2024 to the same quarter in the previous year (Q1 2023), there has been a notable improvement in DSO, as it decreased from 52.25 days to 49.15 days. This reduction indicates a more efficient collection cycle, signaling improvements in receivables management.
It is also worth noting that the DSO has exhibited seasonal fluctuations over the quarters under review, with varying levels of efficiency in revenue collection. For instance, Q2 2023 and Q1 2023 had relatively higher DSO figures of 45.75 days and 52.25 days, respectively, suggesting potential challenges in collecting cash during those periods.
On the other hand, Q2 2022 and Q3 2022 displayed lower DSO values of 40.81 days and 43.92 days, respectively, indicating better performance in collecting cash from customers during those quarters.
Overall, a more detailed analysis of Hewlett Packard Enterprise Co's DSO trend over a longer period could provide valuable insights into the company's receivables management efficiency and its impact on cash flow.
Peer comparison
Jan 31, 2024
See also:
Hewlett Packard Enterprise Co Average Receivable Collection Period (Quarterly Data)