Korn Ferry (KFY)
Days of sales outstanding (DSO)
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.57 | 4.81 | 5.03 | 4.48 | 4.06 | |
| DSO | days | 79.80 | 75.95 | 72.60 | 81.50 | 90.00 |
April 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.57
= 79.80
The provided data illustrates the trend in Korn Ferry’s days of sales outstanding (DSO) over a four-year period, from April 30, 2021, to April 30, 2025. The DSO values are as follows:
- April 30, 2021: 90.00 days
- April 30, 2022: 81.50 days
- April 30, 2023: 72.60 days
- April 30, 2024: 75.95 days
- April 30, 2025: 79.80 days
Initially, the DSO decreased significantly from 90 days in 2021 to approximately 72.6 days in 2023, indicating an improvement in the company's collection efficiency and a reduction in the average time it takes to convert receivables into cash over this period. This downward trend suggests enhanced credit and collection practices or possibly a change in client payment terms that facilitated faster cash inflows.
However, from April 2023 onward, the DSO exhibits a slight upward trajectory, rising from 72.6 days to approximately 79.8 days in 2025. This increase, albeit modest, indicates a potential elongation in the collection period. Several factors could contribute to this trend, including shifts in customer payment behaviors, changes in credit policies, or broader industry shifts affecting payment cycles.
Overall, the pattern reflects an initial period of operational efficiency improvements in receivables management, followed by a stabilization phase with a modest increase in collection periods. This evolving DSO trend warrants ongoing monitoring to understand underlying causes and their potential implications on cash flow and working capital management.
Peer comparison
Apr 30, 2025