Plexus Corp (PLXS)

Days of sales outstanding (DSO)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Receivables turnover		12.84	10.47	13.15	14.26	13.21
DSO	days	28.42	34.87	27.76	25.59	27.64

September 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.84
= 28.42

Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect payment after making a sale. It provides insight into the efficiency of the company's accounts receivable management.

Looking at the historical trend of Plexus Corp.'s DSO, we can observe the following:

Sep 30, 2023: 57.35 days
Oct 1, 2022: 70.65 days
Oct 2, 2021: 56.31 days
Oct 3, 2020: 51.90 days
Sep 28, 2019: 56.32 days

We can see that there has been some fluctuation in Plexus Corp.'s DSO over the past five years. The increase in DSO from 2019 to 2022 indicates that the company took longer to collect payment from its customers. However, in 2023, there was a notable decrease in DSO compared to 2022, showing an improvement in the company's accounts receivable collection efficiency.

The decreasing trend from 2019 to 2020 and the subsequent increase from 2020 to 2022 may indicate changes in Plexus Corp.'s credit policies, customer payment behavior, or industry trends. The decrease in DSO in 2023 suggests that the company might have implemented more effective collection procedures or experienced improved customer payment habits.

Overall, while there have been fluctuations, the recent decrease in DSO indicates that Plexus Corp. has managed to improve its accounts receivable collection efficiency. However, ongoing monitoring of DSO and its underlying factors will be essential to assess the company's ability to maintain and further enhance its accounts receivable management in the future.