Intuit Inc (INTU)
Days of sales outstanding (DSO)
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 30.44 | 33.11 | 12.14 | 14.75 | 38.20 | |
| DSO | days | 11.99 | 11.03 | 30.06 | 24.74 | 9.55 |
July 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 30.44
= 11.99
Intuit Inc's Days Sales Outstanding (DSO) ratio measures the number of days it takes the company to collect revenue after making a sale. A lower DSO indicates that the company is able to collect cash more quickly, whereas a higher DSO suggests that the company may be facing challenges in collecting payments from customers.
Analyzing the trend in Intuit Inc's DSO over the past five years, we observe fluctuations in the ratio. In fiscal year 2020, the DSO was at a low of 9.55 days, indicating efficient collections. This was followed by a slight increase to 24.74 days in fiscal year 2021, suggesting potential issues with collections efficiency during that period. However, in fiscal year 2022, there was a substantial spike in DSO to 30.06 days, indicating a significant delay in the collection of revenues.
The most recent data for fiscal year 2023 and 2024 show improvements in the DSO, decreasing to 11.03 days and 11.99 days, respectively. This downward trend in DSO suggests that Intuit Inc has been able to enhance its collection processes, resulting in a quicker conversion of sales into cash.
Overall, the improvement in DSO over the last two years reflects positively on Intuit Inc's ability to manage its accounts receivable efficiently and indicates a more streamlined revenue collection process..monitoring and control.
Peer comparison
Jul 31, 2024