Palo Alto Networks Inc (PANW)

Days of sales outstanding (DSO)

		Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019
Receivables turnover		2.40	3.40	3.20	3.86	2.40	3.82	4.23	4.16	2.43	3.76	4.47	4.83	3.10	4.80	5.25	5.06	3.20	4.76	5.63	5.88
DSO	days	152.07	107.36	113.94	94.54	151.80	95.45	86.37	87.64	150.23	97.04	81.71	75.64	117.82	76.04	69.58	72.16	114.09	76.65	64.86	62.09

July 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.40
= 152.07

Days Sales Outstanding (DSO) is a key metric that indicates the average number of days a company takes to collect revenue after a sale has been made. In the case of Palo Alto Networks Inc, the trend in DSO over the past few quarters has shown some variability.

Looking at the data provided, we can see that the DSO for Palo Alto Networks Inc has fluctuated significantly over the last few quarters. The DSO ranged from a low of 62.09 days in October 2019 to a peak of 152.07 days in July 2024. This fluctuation suggests some inconsistency in the company's ability to collect receivables efficiently.

The company experienced a sharp increase in DSO in July 2024 compared to the previous quarter, indicating a potential delay in collecting revenue from sales. This increase may raise concerns about the company's accounts receivable management and its ability to convert sales into cash in a timely manner.

Overall, a high DSO can signal potential liquidity issues or inefficiencies in the company's credit and collection policies. It is important for Palo Alto Networks Inc to closely monitor and manage its DSO to ensure timely collection of receivables and maintain healthy cash flows.