OSI Systems Inc (OSIS)

Days of sales outstanding (DSO)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Receivables turnover		2.04	2.51	2.34	2.33	2.37	2.92	3.69	3.98	3.36	4.00	3.69	3.74	3.84	4.17	4.07	4.01	3.95	4.22	4.18	4.46
DSO	days	178.49	145.25	155.71	156.51	153.75	125.12	98.82	91.64	108.73	91.19	98.92	97.63	95.00	87.60	89.71	91.00	92.50	86.46	87.23	81.76

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.04
= 178.49

The analysis of OSI Systems Inc.'s Days of Sales Outstanding (DSO) over the specified period reveals a trend of increasing receivable collection periods. Starting from approximately 81.76 days as of September 30, 2020, the DSO gradually increased, reaching 108.73 days by June 30, 2023. A notable spike occurred during the third quarter of 2024, with the DSO escalating to 156.51 days, and further extending to 178.49 days by June 30, 2025.

This upward trajectory indicates that the company's collection period has lengthened significantly over the analyzed timeframe. The persistent rise suggests potential challenges in receivables management, changes in credit policy, difficulties in collections, or shifts in customer creditworthiness. The sharp increase from under 100 days in early 2023 to over 150 days in late 2024 marks a substantial deterioration in the efficiency of accounts receivable turnover.

Overall, the data underscores a trend toward prolonged periods for collecting sales revenue, which could impact the company's cash flow and liquidity position if the trend persists. Continued monitoring and analysis are advisable to determine whether these changes reflect temporary fluctuations or a more sustained shift in receivables management.