ResMed Inc (RMD)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.60 | 5.99 | 6.21 | 5.20 | 6.23 | |
| DSO | days | 65.23 | 60.93 | 58.75 | 70.14 | 58.59 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.60
= 65.23
The days of sales outstanding (DSO) for ResMed Inc have exhibited variability over the past five years. In particular, there was an increase in DSO from 57.60 days in June 2022 to 68.66 days in June 2021, indicating a potential delay in collecting accounts receivable during that period. However, this was followed by a decrease to 61.62 days in June 2023 and then a subsequent increase to 65.28 days in June 2024.
The upward trend in DSO from 2022 to 2021 may suggest potential issues with the company's credit policies or collection processes during that period, while the fluctuations in DSO in the following years could indicate ongoing efforts to improve working capital management.
Overall, the DSO trend for ResMed Inc demonstrates the importance of monitoring accounts receivable turnover and collection efficiency to ensure timely cash inflows and optimal liquidity management in the company's operations.
Peer comparison
Jun 30, 2024