Medtronic PLC (MDT)

Days of sales outstanding (DSO)

		Apr 26, 2024	Jan 26, 2024	Oct 27, 2023	Jul 28, 2023	Apr 28, 2023	Jan 27, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	Apr 24, 2020	Jan 24, 2020	Oct 25, 2019	Jul 26, 2019
Receivables turnover		5.38	5.48	5.45	5.51	5.26	5.10	5.36	5.73	5.61	5.74	5.69	5.65	5.34	5.20	5.06	5.63	5.94	4.76	4.82	4.95
DSO	days	67.81	66.66	66.96	66.27	69.43	71.51	68.16	63.66	65.03	63.54	64.12	64.56	68.30	70.13	72.10	64.87	61.48	76.72	75.78	73.76

April 26, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.38
= 67.81

Days Sales Outstanding (DSO) measures how long it takes for a company to collect revenue after a sale is made. A lower DSO indicates faster collections, which can be beneficial for cash flow management. Medtronic PLC's DSO has been fluctuating over the past few quarters, ranging from a low of 61.48 days to a high of 76.72 days.

It is important to note that a consistent downward trend in DSO over time can signify an improvement in the company's accounts receivable management. On the other hand, an increasing trend in DSO could indicate potential issues with collecting payments from customers in a timely manner.

In the most recent period, Medtronic PLC's DSO was 67.81 days, slightly higher compared to the preceding quarter's 66.66 days. While the increase in DSO is relatively small, it could be worth monitoring in future periods to see if it continues to climb or if it reverts back to a decreasing trend. Overall, a thorough analysis of the company's DSO trend alongside other financial metrics is essential for a comprehensive evaluation of its financial health.