Medtronic PLC (MDT)

Days of sales outstanding (DSO)

		Apr 30, 2024	Apr 26, 2024	Apr 30, 2023	Apr 28, 2023	Apr 30, 2022
Receivables turnover		—	5.38	—	5.26	—
DSO	days	—	67.86	—	69.44	—

April 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

The Days Sales Outstanding (DSO) ratio is a key metric used to assess how efficiently a company collects its accounts receivable. In the case of Medtronic PLC, the DSO has fluctuated over the past few years.

As of April 28, 2023, Medtronic had a DSO of 69.44 days, indicating that, on average, it took the company approximately 69.44 days to collect on its sales. A lower DSO is generally preferred as it signifies quicker collection of receivables, which can improve cash flow and liquidity.

Looking at the trend, we observe that the DSO decreased to 67.86 days as of April 26, 2024. This decrease may suggest that the company has been more effective in managing its accounts receivable, potentially through improved credit policies or more proactive collection efforts.

It is noted that there are missing DSO values for certain periods, which could be due to the unavailability of specific financial data or other factors that may have influenced the calculation. Overall, monitoring DSO trends can provide valuable insights into a company's financial health and efficiency in managing its receivables.