Intuit Inc (INTU)

Days of sales outstanding (DSO)

		Jul 31, 2025	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021
Receivables turnover		9.50	12.37	12.82	12.14	14.91
DSO	days	38.44	29.52	28.48	30.06	24.48

July 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.50
= 38.44

The analysis of Intuit Inc.'s Days of Sales Outstanding (DSO) over the specified period reveals the following trends and insights:

Between July 31, 2021, and July 31, 2022, the DSO increased from 24.48 days to 30.06 days, indicating that the company was taking a longer period to collect receivables, an extension of approximately 5.58 days. This uptick may suggest a shift towards more lenient credit terms, delays in collections, or operational adjustments affecting receivables turnover during this period.

From July 31, 2022, to July 31, 2023, the DSO decreased slightly to 28.48 days, signaling a modest improvement in receivables management or collection efficiency. Although the DSO remains higher than the 2021 level, the reduction may reflect efforts to streamline collection processes or tighten credit policies.

However, between July 31, 2023, and July 31, 2024, the DSO experienced a marginal increase to 29.52 days, suggesting a stabilization in receivables collection performance. The DSO level during these years reflects generally stable credit and collections management, with minor fluctuations that could be attributed to seasonal factors or slight operational adjustments.

Notably, there is a significant rise in DSO from July 31, 2024, to July 31, 2025, where the metric jumps to 38.44 days. This represents an increase of approximately 8.92 days, pointing towards a deterioration in receivables collection efficiency. The substantial elongation in collection period could be driven by changes in customer credit terms, increased delinquencies, or strategic shifts in credit policies. This upward trend may warrant closer scrutiny since a longer DSO can impact liquidity and cash flow management.

Overall, the observance of DSO over the four-year span exhibits an initial increase followed by a period of relative stabilization, culminating in a notable rise in the latest year. The pattern suggests that while Intuit’s collection cycle was lengthening in the earlier years, recent data indicates a significant extension of the average collection period, which could pose potential concerns regarding short-term liquidity and working capital management if the trend persists.