Micron Technology Inc (MU)

Days of sales outstanding (DSO)

		Aug 31, 2024	Aug 29, 2024	Aug 31, 2023	Sep 1, 2022	Aug 31, 2022
Receivables turnover		—	3.80	—	5.95	—
DSO	days	—	95.93	—	61.34	—

August 31, 2024 calculation

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

Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is managing its accounts receivable. DSO represents the average number of days it takes for a company to collect revenue after a sale has been made.

Based on the data provided for Micron Technology Inc:

1. As of September 1, 2022, the DSO was 61.34 days. This indicates that, on average, it takes Micron Technology Inc approximately 61.34 days to collect revenue from its customers.

2. For the periods ending on August 29, 2024, the DSO had increased significantly to 95.93 days. This suggests that the collection process may be slowing down, potentially indicating issues with credit policies, collection efforts, or customer payment behaviors.

It is important for Micron Technology Inc to effectively manage its DSO to ensure timely collection of accounts receivable and maintain healthy cash flow. Analyzing trends in DSO over time can provide insights into the company's operational efficiency and financial health. It may be beneficial for the company to review its credit management practices and customer relationships to optimize its DSO and improve overall liquidity.