ScanSource Inc (SCSC)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.87 | 4.56 | 4.40 | 4.89 | 6.08 | |
| DSO | days | 74.96 | 80.04 | 82.88 | 74.57 | 60.07 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.87
= 74.96
Based on the data provided, ScanSource Inc's days of sales outstanding (DSO) have fluctuated over the past five years. In 2020, the DSO was 60.07 days, showing a relatively efficient collection period. However, this metric increased in the subsequent years, reaching 82.88 days in June 2022, indicating a slowdown in the collection of accounts receivable.
The DSO improved slightly to 74.57 days in June 2021 before decreasing further to 80.04 days in June 2023. In the most recent period ending June 2024, the company managed to reduce its DSO to 74.96 days, showing some improvement in collecting outstanding sales.
Overall, ScanSource Inc's DSO trend indicates that the company may have faced challenges in efficiently collecting accounts receivable in recent years. Management should continue to monitor and potentially implement strategies to shorten the DSO, as a lower DSO typically indicates better liquidity and efficiency in managing working capital.
Peer comparison
Jun 30, 2024