Pure Storage Inc (PSTG)
Days of sales outstanding (DSO)
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.25 | 4.47 | 3.95 | 3.59 | 3.52 | |
| DSO | days | 85.79 | 81.58 | 92.51 | 101.63 | 103.84 |
February 4, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.25
= 85.79
The days of sales outstanding (DSO) is a measure of how long, on average, a company takes to collect its accounts receivable. In the case of Pure Storage Inc, over the past five years, the DSO has shown some fluctuations.
In 2024, Pure Storage Inc's DSO stands at 85.79 days, which is an improvement compared to the prior year's DSO of 81.58 days. This could indicate more efficient collections processes or better credit management practices.
Looking further back, in 2022, the DSO was relatively high at 92.51 days, but it was lower than in 2021 (101.63 days) and 2020 (103.84 days). This suggests that Pure Storage Inc has made progress in collecting accounts receivable more quickly over the years.
Overall, the trend in the DSO for Pure Storage Inc shows some variability but generally indicates an effort to manage receivables effectively. It is essential for the company to continue monitoring and improving its DSO to ensure efficient cash flow management and healthy liquidity position.
Peer comparison
Feb 4, 2024