Microsoft Corporation (MSFT)
Days of sales outstanding (DSO)
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.31 | 4.33 | 4.25 | 4.39 | 4.18 | |
| DSO | days | 84.73 | 84.24 | 85.80 | 83.16 | 87.26 |
June 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.31
= 84.73
Days Sales Outstanding (DSO) measures the average number of days it takes for Microsoft Corporation to collect payment for its sales. A lower DSO indicates that the company is collecting payments more quickly, which can be a positive sign of efficiency in managing accounts receivable.
Looking at the trend over the past five years, Microsoft's DSO has remained relatively consistent, ranging from 81.48 days to 85.63 days. This suggests that the company has been successful in maintaining a stable collection period for its sales.
In 2023, the DSO increased slightly to 83.86 days compared to the previous year, indicating a slight delay in collecting payments. This may warrant further investigation to understand the reasons behind the increase and to assess if it is a temporary fluctuation or a developing trend.
Overall, Microsoft's DSO indicates a reasonable efficiency in collecting payments from customers, but the recent increase should be monitored to ensure it does not become a persistent issue impacting the company's cash flow.
Peer comparison
Jun 30, 2023