OSI Systems Inc (OSIS)

The analysis of OSI Systems Inc.'s Days of Sales Outstanding (DSO) over the specified period indicates a notable increase in the average number of days it takes the company to collect its receivables. As of June 30, 2021, the DSO was approximately 92.50 days, reflecting a relatively moderate receivables collection period. Over the subsequent years, this metric exhibits a gradual upward trend, reaching 95.00 days as of June 30, 2022, and then increasing more significantly to 108.73 days by June 30, 2023. The upward trajectory continues markedly in the following years, with DSO expanding to 153.74 days by June 30, 2024, and further to 178.49 days as of June 30, 2025.

This progressive rise in DSO suggests that OSI Systems Inc. is experiencing increasing delays in receivables collection over time. The duration to convert sales into cash has nearly doubled from about three months in mid-2021 to nearly six months by mid-2025. Such a trend could indicate potential challenges in the company's credit policies, changing customer payment behaviors, or a shift in industry dynamics. It may also imply a risk of liquidity pressure if receivables are not collected efficiently. This elongation in collection period warrants further investigation into the company's credit management procedures and customer creditworthiness to assess the impact on overall financial health.

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Jun 30, 2025