Lumentum Holdings Inc (LITE)
Days of sales outstanding (DSO)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.58 | 6.98 | 7.18 | 6.54 | 8.19 | |
| DSO | days | 55.47 | 52.28 | 50.84 | 55.84 | 44.57 |
June 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.58
= 55.47
The days of sales outstanding (DSO) for Lumentum Holdings Inc. have demonstrated variability over the period from June 30, 2021, to June 30, 2025. On June 30, 2021, the DSO stood at approximately 44.57 days, reflecting the company's efficiency in collecting receivables at that time. By June 30, 2022, DSO increased significantly to approximately 55.84 days, indicating a slowdown in collections or a possible change in credit policies or customer payment behavior.
In the subsequent year, the DSO slightly declined to around 50.84 days as of June 30, 2023, suggesting a modest improvement in receivables collection efficiency. However, by June 30, 2024, the DSO increased again to approximately 52.28 days, reflecting a slight elongation in the average collection period. The trend continued to show an upward trajectory, with the DSO reaching approximately 55.47 days as of June 30, 2025.
Overall, over the four-year span, Lumentum's DSO has generally trended upward, implying that the company has been taking increasingly longer periods to convert receivables into cash. This trend could be attributed to various factors, such as changing credit terms with customers, shifts in industry payment practices, or potential challenges in collections. The incremental increase in DSO from 44.57 days in 2021 to 55.47 days in 2025 signifies a need for monitoring receivables management to ensure that extended collection periods do not adversely affect the company's cash flow and liquidity position.
Peer comparison
Jun 30, 2025