Lumentum Holdings Inc (LITE)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 468.59 | 258.58 | 421.67 | 408.46 | 372.86 | |
| DSO | days | 0.78 | 1.41 | 0.87 | 0.89 | 0.98 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 468.59
= 0.78
The days of sales outstanding (DSO) ratio for Lumentum Holdings Inc has fluctuated over the past five years. In the most recent fiscal year ending on June 30, 2024, the DSO decreased to 0.78 days from 1.41 days in the previous year. This indicates that the company is collecting its accounts receivable more efficiently compared to the prior year.
Compared to two years ago, the DSO has also improved significantly from 0.87 days in June 30, 2022. This suggests that Lumentum Holdings Inc has become more effective in converting its sales into cash within a shorter period.
Furthermore, looking at a longer-term trend, the DSO has gradually decreased since June 30, 2020, when it stood at 0.98 days. This consistent improvement in DSO reflects the company's enhanced management of accounts receivable and potentially stronger cash flow generation.
Overall, the decreasing trend in DSO for Lumentum Holdings Inc indicates that the company is efficiently managing its accounts receivable and collecting payments from customers in a timelier manner, which could positively impact its working capital and liquidity position.
Peer comparison
Jun 30, 2024