Simulations Plus Inc (SLP)

Days of sales outstanding (DSO)

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Receivables turnover		4.93	6.00	5.84	5.45	4.77	4.57	3.91	2.80	3.31	4.08	4.72	3.56	4.04	5.85	5.60	3.69	5.21	5.64	6.76	4.22
DSO	days	74.02	60.80	62.50	66.95	76.47	79.89	93.35	130.43	110.16	89.56	77.38	102.48	90.33	62.39	65.14	98.85	70.11	64.71	54.01	86.52

February 29, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.93
= 74.02

The Days Sales Outstanding (DSO) is a measure of how long it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments more quickly, while a higher DSO suggests that it is taking longer to collect payments.

Analyzing the trend of Simulations Plus Inc's DSO over the past few periods, we can see fluctuations in the DSO values. The DSO has ranged from a low of 54.01 days to a high of 130.43 days over the periods listed.

In recent periods, there appears to be some variability in the DSO, with values ranging between 60.80 days and 74.02 days. It indicates that the company has been managing its accounts receivable efficiency to some extent.

The recent DSO values suggest that Simulations Plus Inc is taking an average of around 60 to 74 days to collect its accounts receivable. Further analysis would be required to understand the specific factors contributing to these fluctuations and whether there are any areas for improvement in managing accounts receivable effectively.