OSI Systems Inc (OSIS)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 2.37 | 3.36 | 3.93 | 3.86 | 4.13 | |
| DSO | days | 154.26 | 108.56 | 92.84 | 94.52 | 88.33 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.37
= 154.26
The days of sales outstanding (DSO) for OSI Systems Inc have shown some fluctuations over the past five years. In June 2020, the DSO was at 88.33 days, indicating that on average, it took the company about 88 days to collect its accounts receivable. This increased in June 2021 to 94.52 days before decreasing in June 2022 to 92.84 days. However, there was a significant increase in DSO in June 2023 to 108.56 days, and another notable increase in June 2024 to 154.26 days.
The upward trend in DSO suggests that OSI Systems Inc may be experiencing challenges in collecting its accounts receivable efficiently. A higher DSO can indicate potential issues with credit and collection policies, potential liquidity concerns, or difficulties in managing receivables.
It is important for the company to closely monitor and analyze its DSO trend to ensure timely collection of accounts receivable and maintain healthy cash flows. Management may need to implement measures to improve collections processes, tighten credit policies, or engage in proactive communication with customers to address any potential issues impacting DSO.
Peer comparison
Jun 30, 2024