Leidos Holdings Inc (LDOS)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Receivables turnover		6.24	5.94	5.79	6.36	6.18	5.99	5.80	6.13	6.21	5.80	5.75	6.28	5.90	5.84	5.89	5.75	6.41	6.48	6.36	6.40
DSO	days	58.48	61.48	63.02	57.43	59.06	60.94	62.95	59.58	58.75	62.88	63.45	58.16	61.87	62.53	61.97	63.43	56.94	56.33	57.38	57.05

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.24
= 58.48

The Days of Sales Outstanding (DSO) metric for Leidos Holdings Inc indicates the average number of days it takes for the company to collect revenue from its customers after making a sale. Over the analyzed period from December 31, 2019, to December 31, 2024, the DSO figures have fluctuated within a range of around 56 to 63 days.

The DSO started at 57.05 days on December 31, 2019, slightly increased to 63.43 days by December 31, 2020, then decreased to around 58 days by December 31, 2021. The metric fluctuated further between 58 to 63 days until December 31, 2023, when it decreased to 57.43 days.

From a trend analysis perspective, the DSO appears to exhibit some volatility during the period, showing periodic increases and decreases. The variation in DSO could be influenced by the company's credit policies, sales volume, customer payment patterns, and overall efficiency in accounts receivable management.

Overall, a lower DSO is favorable as it suggests faster collection of accounts receivable and more efficient working capital management. Leidos Holdings Inc may aim to continue monitoring and optimizing its DSO to ensure timely collection of payments and strengthen its cash flow position.