Leidos Holdings Inc (LDOS)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.36	6.13	6.28	5.75	6.40
DSO	days	57.43	59.58	58.16	63.43	57.05

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.36
= 57.43

The days of sales outstanding (DSO) for Leidos Holdings Inc have shown a fluctuating trend over the past five years. In 2023, the DSO decreased to 57.43 days from 59.58 days in 2022, indicating an improvement in the company's ability to collect receivables efficiently. This may imply that Leidos has been managing its accounts receivable more effectively in the most recent year.

Comparing the DSO in 2023 to 2021, there was a slight decrease from 58.16 days to 57.43 days, suggesting a relatively stable performance in collecting receivables between these two years.

However, when looking at the DSO in 2020, there was a significant increase to 63.43 days from 58.16 days in 2021. This implies that Leidos may have faced challenges in collecting receivables promptly in 2020, which could have impacted its cash flow and liquidity during that period.

In 2019, the DSO was 57.05 days, similar to the DSO in 2023. This indicates that the company's performance in collecting receivables has returned to a level comparable to the one observed four years ago.

Overall, the recent decrease in DSO for Leidos Holdings Inc suggests an improvement in the efficiency of its accounts receivable management. However, it is essential to track this ratio consistently to ensure that the company continues to maintain a healthy cash flow position over time.