News Corp B (NWS)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.71 | 6.93 | 6.91 | 6.25 | 7.49 | |
| DSO | days | 54.40 | 52.65 | 52.79 | 58.43 | 48.75 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.71
= 54.40
To analyze News Corp B's Days Sales Outstanding (DSO) trend, we observe that the metric has fluctuated over the past five years. The DSO for the current year ending June 30, 2024, is 54.40 days, showing a slight increase compared to the previous year's 52.65 days. This may indicate that the company is taking slightly longer to collect its accounts receivable in the current period.
Looking back further, we see a consistent pattern with DSO being relatively stable around the low 50s range in the previous years, except for a notable increase in DSO to 58.43 days in the fiscal year ending June 30, 2021.
The DSO metric is crucial as it reflects the average number of days a company takes to collect revenue after a sale is made. A lower DSO is generally favorable as it indicates efficient management of accounts receivable and working capital. On the other hand, a higher DSO may suggest potential issues with credit policies, collections processes, or customer payment behaviors.
In conclusion, while the slight increase in DSO for the current year may warrant monitoring, News Corp B has generally maintained a relatively stable DSO over the past few years. Further investigation into the underlying reasons for the fluctuations in DSO could provide insights into the company's effectiveness in managing its accounts receivable and overall liquidity position.
Peer comparison
Jun 30, 2024