Micron Technology Inc (MU)
Days of sales outstanding (DSO)
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.80 | 6.22 | 5.95 | 5.19 | 5.44 | |
| DSO | days | 95.93 | 58.64 | 61.34 | 70.38 | 67.09 |
August 29, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.80
= 95.93
The Days of Sales Outstanding (DSO) is a measure that indicates the average number of days it takes for a company to collect revenue after making a sale. A lower DSO value generally suggests that a company is collecting its receivables more quickly, which is favorable for cash flow management.
Analyzing the DSO trend for Micron Technology Inc over the past five years, we observe fluctuations in the metric. In the most recent period ending on August 29, 2024, the DSO stood at 95.93 days, representing an increase from the previous year's figure of 58.64 days.
This significant increase in DSO may indicate that Micron Technology Inc is taking longer to collect payments from its customers, potentially impacting its cash flow and liquidity position. It is important for the company to investigate the reasons behind this increase and take necessary steps to improve its accounts receivable management.
In comparison to the DSO figures from 2022, 2021, and 2020, which ranged from 61.34 to 70.38 days, the current DSO level of 95.93 days stands out as an outlier and warrants further attention.
Overall, the rising trend in DSO for Micron Technology Inc indicates a potential deterioration in its revenue collection efficiency, which could have implications for its working capital management and overall financial performance.
Peer comparison
Aug 29, 2024