Leidos Holdings Inc (LDOS)

Days of sales outstanding (DSO)

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		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	6.08	5.71	5.43
DSO	days	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	60.06	63.87	67.16

December 31, 2023 calculation

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

The Days of Sales Outstanding (DSO) is a crucial metric that indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO value generally signifies a more efficient collection process, while a higher DSO value may indicate potential issues with accounts receivable management.

Analyzing the DSO trend for Leidos Holdings Inc over the provided periods reveals fluctuations in its collection efficiency. The DSO for Dec 31, 2019, was 67.16 days, which decreased to 56.33 days by Jun 30, 2020, indicating an improvement in collecting payments. The DSO remained relatively stable around the mid-50s to low 60s days from Mar 31, 2020, to Sep 30, 2022.

However, there was an upward trend in DSO from Dec 31, 2022 (59.58 days) to Mar 31, 2023 (62.95 days), suggesting potential challenges in collecting receivables during this period. The DSO peaked at 63.45 days on Mar 31, 2022, and fluctuated between high 50s to low 60s days until Sep 30, 2023, where it reached 59.06 days.

Overall, the DSO trend for Leidos Holdings Inc indicates periods of both improved efficiency and potential challenges in managing account receivables. Further analysis of the company's collection policies and efforts to reduce DSO during periods of increase would be beneficial for maintaining a healthy cash flow and financial performance.