Synopsys Inc (SNPS)

Days of sales outstanding (DSO)

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Receivables turnover		5.80	6.03	6.96	4.43	5.68
DSO	days	62.91	60.50	52.45	82.37	64.30

October 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.80
= 62.91

Days Sales Outstanding (DSO) measures the average number of days it takes for a company to collect payments after making a sale. A lower DSO indicates that the company is collecting receivables more efficiently.

Synopsys, Inc.'s DSO has fluctuated over the past five years. In 2023, the DSO was 59.16 days, which increased from 57.18 days in 2022. This suggests a slight deterioration in the company's ability to collect payments from customers. However, compared to 2021, the DSO has increased significantly from 49.36 days to 59.16 days, indicating a potential weakening in the company's collections process.

Furthermore, the DSO in 2020 was 77.32 days, a notably higher figure compared to the more recent years. This suggests a period of inefficiency in collecting receivables, which may have improved in subsequent years. In 2019, the DSO was 60.16 days, similar to the 2023 figure, showing a relative stability in collections efficiency over the past few years in comparison.

The trend in DSO indicates that although Synopsys, Inc. experienced fluctuations, the company has generally maintained an average level of efficiency in collecting payments from customers in recent years, with some room for improvement in managing receivables. Further analysis of industry standards and peer comparisons would provide additional insights into the company's DSO performance.