Synopsys Inc (SNPS)

Days of sales outstanding (DSO)

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Receivables turnover		5.76	5.80	8.29	6.78	5.00	6.03	7.25	6.58	4.34	6.96	7.06	6.51	4.84	4.43	5.50	5.36	4.22	5.68	7.23	6.14
DSO	days	63.36	62.91	44.01	53.83	73.06	60.50	50.34	55.45	84.18	52.45	51.73	56.09	75.40	82.37	66.38	68.15	86.43	64.30	50.52	59.49

January 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.76
= 63.36

To analyze Synopsys, Inc.'s days of sales outstanding (DSO) over the past few quarters, we observe a fluctuating trend. In Q1 2024, the DSO stood at 63.36 days, which was higher compared to the previous quarter at 59.16 days in Q4 2023. The DSO peaked in Q1 2023 at 73.06 days but showed a downward trend until reaching a low of 44.01 days in Q3 2023.

Overall, an increase in DSO indicates that it takes the company longer to collect its accounts receivable, while a decrease suggests faster collection. Therefore, monitoring DSO can provide insights into Synopsys' effectiveness in managing its accounts receivable and cash flow. It is important for the company to efficiently manage its DSO to ensure liquidity and effective working capital management.