ScanSource Inc (SCSC)
Days of sales outstanding (DSO)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.78 | 5.61 | 4.55 | 4.84 | 5.54 | |
| DSO | days | 76.28 | 65.11 | 80.30 | 75.43 | 65.91 |
June 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.78
= 76.28
The days of sales outstanding (DSO) for ScanSource Inc. over the period from June 2021 to June 2025 exhibit notable fluctuations that merit detailed analysis. Initially, in June 2021, the DSO stood at approximately 65.91 days. This value increased significantly by June 2022, reaching approximately 75.43 days, indicating a lengthening in the average collection period and suggesting that the company was taking longer to collect receivables during that year.
The upward trend persisted into June 2023, with the DSO rising further to approximately 80.30 days. This increase suggests a continued slowdown in accounts receivable collections, which could be attributable to changes in credit policies, customer payment behavior, or shifts within the company's sales mix. A higher DSO typically signals that cash inflows from sales are being delayed, potentially impacting the company’s liquidity and operational efficiency.
However, in June 2024, there was a marked decrease in DSO to approximately 65.11 days, returning closer to the levels observed in 2021. This decline may indicate improved collection efforts, tighter credit controls, or a change in customer payment practices that facilitated quicker cash collection.
Interestingly, this improvement was not sustained into June 2025, where the DSO again increased to approximately 76.28 days. The rise at this point suggests a reversal of the previous year's better collection performance, possibly due to emerging credit risk, changes in customer payment terms, or other external factors affecting receivable collections.
Overall, the DSO trend over this period reflects episodic fluctuations in collection efficiency. The initial increase from 2021 to 2023 indicates a period of delayed receivables, while the subsequent decrease in 2024 suggests an improvement in collection practices. The slight increase again in 2025 points to ongoing challenges in maintaining optimal receivable collection cycles. Continuous monitoring and analysis of underlying factors influencing these changes are recommended to better understand and address the dynamics affecting ScanSource Inc.'s cash flow management.