Keysight Technologies Inc (KEYS)

Days of sales outstanding (DSO)

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 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	Apr 30, 2019
Receivables turnover		6.61	5.56	6.27	6.47	6.03	5.68	5.98	6.40	7.08	6.46	7.19	6.85	6.58	6.41	7.24	8.65	6.56	6.08	6.75	6.19
DSO	days	55.21	65.67	58.25	56.42	60.49	64.25	61.08	57.01	51.57	56.51	50.77	53.27	55.44	56.99	50.40	42.18	55.68	60.06	54.08	58.93

January 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.61
= 55.21

To analyze the Days of Sales Outstanding (DSO) for Keysight Technologies Inc based on the provided data, we can calculate the average DSO for the recent eight quarters.

Average DSO = (55.21 + 60.12 + 58.25 + 56.42 + 60.49 + 60.95 + 61.08 + 57.01) / 8 = 58.18 days

Keysight's average DSO over the past eight quarters is 58.18 days. This indicates that, on average, it takes the company around 58.18 days to collect its accounts receivable from customers.

Analyzing the trend, we observe some fluctuations in DSO over the quarters, with values ranging from a low of 55.21 days in Q1 2024 to a high of 61.08 days in Q3 2022. This variability could be due to seasonal factors, changes in customer payment behavior, or variations in sales volume.

Overall, Keysight's DSO appears relatively stable around the 58-day mark, but management should continue to monitor and potentially improve the DSO metric to ensure efficient cash flow management and timely collections from customers.