NVIDIA Corporation (NVDA)
Days of sales outstanding (DSO)
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.09 | 7.05 | 5.79 | 6.86 | 6.59 | |
| DSO | days | 59.91 | 51.79 | 63.06 | 53.17 | 55.40 |
January 28, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.09
= 59.91
Days Sales Outstanding (DSO) is a measure of how long it takes a company to collect payment after making a sale. A lower DSO indicates faster cash collection and better liquidity management.
Analyzing NVIDIA Corp's DSO over the past five years, we observe fluctuations in the metric. The DSO was 59.91 days in Jan 28, 2024, showing an increase compared to the prior year but still lower than two years ago. This increase may suggest a slower collection of accounts receivable in the recent period.
Comparing the DSO to Jan 29, 2023, where it stood at 51.79 days, we see a noticeable uptick in the current year. This rise in DSO might indicate potential issues with accounts receivable management or customers taking longer to pay their bills.
Although the DSO has varied over the years, it generally appears to be within a reasonable range for the industry. Further investigation into the reasons behind the fluctuations in DSO, such as changes in credit policies, customer payment behavior, or sales volume, would provide valuable insights into the company's financial health and operational efficiency.
Peer comparison
Jan 28, 2024