Micron Technology Inc (MU)

Days of sales outstanding (DSO)

		Aug 29, 2024	May 30, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	Jun 1, 2023	Mar 2, 2023	Dec 1, 2022	Sep 1, 2022	Jun 2, 2022	Mar 3, 2022	Dec 2, 2021	Sep 2, 2021	Jun 3, 2021	Mar 4, 2021	Dec 3, 2020	Sep 3, 2020	May 28, 2020	Feb 27, 2020	Nov 28, 2019
Receivables turnover		3.80	4.07	5.33	7.07	8.29	9.47	10.04	8.13	5.95	5.16	5.74	5.60	5.19	5.98	6.95	5.93	5.44	5.59	6.40	6.02
DSO	days	95.99	89.73	68.48	51.59	44.01	38.56	36.35	44.87	61.36	70.73	63.56	65.23	70.38	61.02	52.48	61.59	67.08	65.30	57.03	60.67

August 29, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.80
= 95.99

Days Sales Outstanding (DSO) is a critical financial ratio that measures the average number of days a company takes to collect revenue after a sale is made. A higher DSO indicates that a company is taking longer to collect its accounts receivable, potentially signaling inefficiencies in the collection process or potential credit risks.

Analyzing Micron Technology Inc's DSO over the past several quarters reveals some fluctuations in the company's collection efficiency. The DSO has ranged from a low of 36.35 days to a high of 95.99 days over the 20 quarters shown in the table.

In general, a decreasing trend in DSO over time is seen as favorable, as it suggests that the company is collecting payments more quickly. Micron's DSO has shown some improvement over the period, with the most recent figure of 95.99 days dropping to 60.67 days by the end of the period.

However, it should be noted that the DSO figure alone does not provide a complete picture. It is essential to compare Micron's DSO with industry benchmarks and its historical performance to evaluate its effectiveness in managing accounts receivable. Additionally, a high DSO may also be influenced by factors such as industry norms, company payment terms, and changes in customer behavior.

Overall, while Micron Technology Inc's DSO has shown some fluctuations, a decreasing trend over the period indicates improvements in the company's ability to collect revenue efficiently. Monitoring DSO trends and understanding the underlying factors impacting collections can provide valuable insights into the company's financial health and operational efficiency.