Medtronic PLC (MDT)

Days of sales outstanding (DSO)

		Apr 30, 2025	Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Apr 26, 2024	Jan 31, 2024	Jan 26, 2024	Oct 31, 2023	Oct 27, 2023	Jul 31, 2023	Jul 28, 2023	Apr 30, 2023	Apr 28, 2023	Jan 31, 2023	Jan 27, 2023	Oct 31, 2022	Oct 28, 2022	Jul 31, 2022	Jul 29, 2022
Receivables turnover		5.15	5.43	5.53	5.71	5.59	5.50	5.32	5.26	5.24	5.33	5.72	5.73	5.54	5.38	5.15	5.09	5.25	5.34	5.75	5.82
DSO	days	70.91	67.23	66.02	63.97	65.24	66.42	68.55	69.39	69.72	68.49	63.79	63.74	65.86	67.82	70.88	71.72	69.57	68.40	63.51	62.70

April 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.15
= 70.91

Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes a company to collect revenue after a sale is made. A lower DSO indicates that a company is collecting revenue more quickly, which is generally seen as a positive sign of efficiency.

Analyzing the DSO trend of Medtronic PLC over the given period, we can observe fluctuations in the number of days it takes the company to collect revenue. The DSO values ranged from a low of 62.70 days in July 2022 to a high of 71.72 days in January 2023, before gradually declining to 63.97 days in July 2024.

A stable or decreasing trend in DSO can be interpreted positively, as it suggests effective management of accounts receivable and timely collection of revenue. On the other hand, an increasing trend in DSO could signal potential issues with collection processes or customer creditworthiness.

It is important for Medtronic PLC to closely monitor its DSO and implement strategies to optimize its accounts receivable management. By effectively managing DSO, the company can improve cash flow, reduce the risk of bad debt, and enhance its overall financial health.