H&R Block Inc (HRB)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 51.13 | 10.10 | 8.59 | 56.42 | 56.68 | 13.71 | 10.29 | 55.21 | 57.75 | 17.78 | 9.63 | 51.18 | 16.72 | 4.94 | 41.96 | 30.91 | 19.42 | 3.72 | 40.49 | 39.58 | |
| DSO | days | 7.14 | 36.15 | 42.49 | 6.47 | 6.44 | 26.63 | 35.47 | 6.61 | 6.32 | 20.53 | 37.91 | 7.13 | 21.83 | 73.85 | 8.70 | 11.81 | 18.80 | 98.14 | 9.02 | 9.22 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 51.13
= 7.14
Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally favorable as it signifies efficient accounts receivable management.
Analyzing the historical DSO data for H&R Block Inc reveals fluctuations in the collection efficiency over time. In the most recent period ending June 30, 2024, the company had a DSO of 7.14 days, reflecting a significant improvement in collection speed compared to the previous quarter (36.15 days) and the corresponding period in the previous year (6.44 days).
Looking back further, there are instances of elevated DSO figures, such as in January 2021 (73.85 days) and January 2020 (98.14 days), indicating possible challenges in accounts receivable collections during those periods. However, the company managed to reduce DSO to single digits in most quarters, which is indicative of effective credit and collection practices.
It is essential for H&R Block Inc to consistently monitor and manage its DSO to ensure timely collection of receivables and maintain healthy cash flows. By analyzing trends in DSO, the company can identify potential issues in accounts receivable management and implement strategies to improve cash flow efficiency.
Peer comparison
Jun 30, 2024