H&R Block Inc (HRB)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 51.13 | 56.68 | 57.75 | 16.72 | 19.10 | |
| DSO | days | 7.14 | 6.44 | 6.32 | 21.83 | 19.11 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 51.13
= 7.14
The days of sales outstanding (DSO) for H&R Block Inc have shown a fluctuating trend over the past five years. In June 2024, the DSO was 7.14 days, which increased compared to the previous year (6.44 days in June 2023) and the year before (6.32 days in June 2022).
The increase in DSO indicates that the company takes longer to collect its accounts receivable, which could imply potential issues with its credit policies or customer payment habits. It is important to monitor DSO closely as it can impact the company's liquidity and cash flow.
In contrast, in April 2021 and April 2020, the DSO was significantly higher at 21.83 days and 19.11 days, respectively. This suggests that H&R Block Inc has made improvements in its accounts receivable collection process over the past few years.
Overall, H&R Block Inc should continue to monitor and manage its DSO effectively to ensure timely collection of receivables and maintain a healthy cash flow position.
Peer comparison
Jun 30, 2024