HP Inc (HPQ)
Days of sales outstanding (DSO)
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.34 | 8.59 | 8.81 | 10.17 | 9.62 | 8.77 | 10.33 | 10.68 | 49.54 | 9.82 | 9.13 | 8.51 | 8.09 | 8.71 | 8.79 | 7.63 | 7.58 | 7.78 | 7.89 | 9.57 | |
| DSO | days | 49.73 | 42.48 | 41.43 | 35.90 | 37.96 | 41.62 | 35.35 | 34.19 | 7.37 | 37.19 | 39.98 | 42.91 | 45.12 | 41.90 | 41.53 | 47.84 | 48.16 | 46.90 | 46.28 | 38.13 |
October 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.34
= 49.73
The Days of Sales Outstanding (DSO) for HP Inc has fluctuated over the past several quarters.
From Oct 31, 2020, to Jul 31, 2022, the DSO figures remained relatively stable, fluctuating between 37.19 days to 39.98 days. However, there was a sudden drop to 7.37 days on Oct 31, 2022, indicating a significant improvement in collecting accounts receivable.
Subsequently, there was an increase in DSO over the following quarters, reaching a peak of 49.73 days on Oct 31, 2024. This increase in DSO could suggest a potential issue with collecting outstanding invoices promptly, leading to a longer period for converting sales into cash.
Overall, HP Inc's DSO trend indicates variations in the efficiency of its account receivables management. The company should focus on maintaining a balance between timely collection of receivables and optimizing sales processes to improve cash flow and overall financial performance.
Peer comparison
Oct 31, 2024
See also:
HP Inc Average Receivable Collection Period (Quarterly Data)