HP Inc (HPQ)
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 | 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 | 7.36 | 8.30 | 8.11 | |
| DSO | days | 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 | 49.59 | 43.96 | 45.00 |
January 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.17
= 35.90
Days Sales Outstanding (DSO) is a measure of how long it takes a company to collect payment after making a sale. A lower DSO indicates that a company is collecting payments faster, which can improve cash flow and liquidity.
Analyzing HP Inc's DSO over the past eight quarters, we observe some fluctuations. In Q2 2023, the DSO was at its lowest at 41.06 days, indicating efficient collections. This was followed by an increase in Q3 2023 to 47.32 days, suggesting a slower collection period.
Overall, the DSO for HP Inc has generally been within a narrow range between 39.73 days and 47.32 days over the past two years. This consistency indicates that the company has a relatively stable accounts receivable management process.
However, it is essential for HP Inc to closely monitor any increases in DSO, as prolonged collection periods can negatively impact cash flow and working capital. By identifying the reasons behind fluctuations in DSO and implementing targeted strategies to improve collections, HP Inc can enhance its overall financial performance and efficiency.
Peer comparison
Jan 31, 2024
See also:
HP Inc Average Receivable Collection Period (Quarterly Data)