Keysight Technologies Inc (KEYS)

Days of sales outstanding (DSO)

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Receivables turnover		4.82	5.56	5.68	6.46	6.41
DSO	days	75.65	65.67	64.25	56.51	56.99

October 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.82
= 75.65

To analyze the Days of Sales Outstanding (DSO) of Keysight Technologies Inc over the past five years, we observe a gradual increase in the number of days it takes the company to collect its accounts receivable:

- In October 2020, the DSO stood at 56.99 days, indicating that on average, it took Keysight Technologies almost 57 days to collect payment from its customers.
- By October 2021, the DSO increased to 56.51 days, suggesting a slight improvement in collection efficiency.
- There was a noticeable uptick in October 2022, with the DSO rising to 64.25 days, signaling a slower pace of collections compared to the previous year.
- This trend continued in October 2023, as the DSO further increased to 65.67 days, indicating a prolonged period for accounts receivable collection.
- The most recent data point in October 2024 showed a DSO of 75.65 days, representing a substantial increase compared to the prior year, highlighting potential challenges in efficiently converting sales into cash.

Overall, the increasing trend in DSO for Keysight Technologies Inc over the past five years suggests a lengthening of the collection cycle and potentially indicates difficulties or inefficiencies in managing accounts receivable. It would be prudent for the company to assess its credit policies, collection procedures, and customer base to improve cash flow and working capital management.