News Corp A (NWSA)
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 A's Days of Sales Outstanding (DSO) over the past five years, we observe a fluctuating trend in the collection period for accounts receivable. In the fiscal year ending June 30, 2020, the DSO was relatively low at 48.75 days, indicating efficient collection practices. However, this figure increased in the subsequent fiscal year ending June 30, 2021, to 58.43 days, suggesting potential delays in collecting receivables.
Subsequently, there was a slight improvement in DSO for fiscal year 2022 and 2023, with figures of 52.79 days and 52.65 days, respectively. This may indicate efforts to streamline accounts receivable processes and enhance efficiency in collections.
In the most recent fiscal year ending June 30, 2024, the DSO increased slightly to 54.40 days. While this uptick may raise concerns about the company's liquidity and working capital management, it is essential to consider industry norms and seasonal variations that may influence DSO.
Overall, News Corp A's DSO trend shows variability in the efficiency of accounts receivable collection over the years, necessitating continued monitoring and potential adjustments to optimize working capital management and cash flow generation.
Peer comparison
Jun 30, 2024