OSI Systems Inc (OSIS)

Days of sales outstanding (DSO)

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Receivables turnover		2.37	2.91	3.68	3.97	3.34	3.99	3.68	3.73	3.83	4.15	4.05	4.00	3.85	4.20	4.17	4.45	4.13	4.57	4.61	4.84
DSO	days	153.75	125.61	99.24	92.05	109.22	91.38	99.12	97.83	95.24	87.91	90.03	91.32	94.75	86.82	87.59	82.09	88.41	79.93	79.12	75.48

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.37
= 153.75

Based on the data provided for OSI Systems Inc, the Days of Sales Outstanding (DSO) ratio has shown some fluctuations over the past 2 years. DSO is a measure of how long it takes a company to collect its accounts receivable.

In the latest period ending June 30, 2024, the DSO stands at 153.75 days, which is significantly higher than the previous quarter's DSO of 125.61 days. This increase may indicate that OSI Systems Inc is taking longer to collect payments from its customers, potentially indicating inefficiencies in its accounts receivable management or potential credit risks with customers.

Comparing the current DSO to historical figures, OSI Systems Inc's DSO has been fluctuating over the past 2 years, with periods of decrease followed by increases. The highest DSO was reported in December 2020 at 82.09 days, while the lowest was in March 2021 at 75.48 days.

It is important for OSI Systems Inc to closely monitor their DSO ratio and take necessary steps to improve collections efficiency, such as implementing stricter credit policies, improving invoicing processes, or enhancing collection efforts. High DSO can tie up working capital and indicate potential liquidity issues if not managed effectively.