Keysight Technologies Inc (KEYS)

Days of sales outstanding (DSO)

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Receivables turnover		4.82	6.24	6.39	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
DSO	days	75.65	58.51	57.14	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

October 31, 2024 calculation

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

From the data provided, the days of sales outstanding (DSO) for Keysight Technologies Inc have fluctuated over the past few years, indicating varying levels of efficiency in collecting accounts receivable.

The DSO metric measures the average number of days it takes for a company to collect payment after a sale is made. A lower DSO is generally preferable as it signifies that the company is able to collect payments more quickly, improving cash flow and working capital management.

Looking at the trend, there is an overall downward trajectory in DSO from 2020 to 2022, indicating an improvement in the company's ability to collect payments efficiently during this period. However, there is a slight increase in DSO in the most recent quarters of 2023 and 2024, which may indicate potential challenges in accounts receivable management or changes in customer payment behavior.

It would be essential for Keysight Technologies Inc to closely monitor and analyze the reasons behind the recent increase in DSO to ensure that it does not have a negative impact on the company's liquidity and financial performance. Effective credit policies and collection processes may need to be reviewed and enhanced to maintain optimal levels of DSO and cash flow management.