Leidos Holdings Inc (LDOS)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.30 | 6.36 | 6.13 | 6.28 | 5.75 | |
| DSO | days | 57.94 | 57.43 | 59.58 | 58.16 | 63.43 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.30
= 57.94
The days of sales outstanding (DSO) for Leidos Holdings Inc have displayed a favorable trend over the past five years. Starting at 63.43 days as of December 31, 2020, the DSO decreased steadily to 58.16 days by December 31, 2021. The trend continued with minor fluctuations, reaching 57.43 days by December 31, 2023, and slightly increasing to 57.94 days by December 31, 2024.
Overall, the decreasing DSO indicates that Leidos Holdings Inc has been successful in managing its accounts receivable effectively, improving its collection processes, and optimizing working capital utilization. The company's ability to convert sales into cash more efficiently over the years is a positive indicator of its financial health and operational efficiency.
Peer comparison
Dec 31, 2024