Simulations Plus Inc (SLP)

Days of sales outstanding (DSO)

		Aug 31, 2024	May 31, 2024	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
Receivables turnover		7.90	6.75	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
DSO	days	46.19	54.04	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

August 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.90
= 46.19

The Days Sales Outstanding (DSO) for Simulations Plus Inc has fluctuated over the past few years, indicating variability in the company's ability to collect outstanding receivables.

The DSO was 46.19 days as of Aug 31, 2024, which improved from the previous quarter. This suggests that the company was able to collect its accounts receivable faster during this period.

Looking back at historical data, the DSO has shown some volatility, with peaks observed in the range of 93.35 days to 130.43 days in the earlier periods, such as Aug 31, 2022, and May 31, 2022. These higher DSO figures indicate that the company took a longer time to convert its sales into cash, potentially signaling challenges in collecting receivables efficiently during those periods.

On the other hand, lower DSO values, such as the 62.39 days reported on Feb 28, 2021, and the 46.19 days reported on Aug 31, 2024, are indicative of improved receivables management and quicker cash conversion cycles.

Overall, monitoring DSO trends can provide insights into the effectiveness of Simulations Plus Inc's credit and collection policies, as well as the overall health of its accounts receivable management process.