Synopsys Inc (SNPS)

Days of sales outstanding (DSO)

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Receivables turnover		6.40	7.74	7.41	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
DSO	days	57.01	47.18	49.23	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

October 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.40
= 57.01

Days Sales Outstanding (DSO) is a measure used to evaluate how efficiently a company collects its accounts receivable. A lower DSO value indicates faster collection of receivables and better liquidity management.

Analyzing Synopsys Inc's DSO over the past 20 quarters, we observe some fluctuations in the DSO values. In the most recent quarter ending October 31, 2024, the DSO was 57.01 days, which is higher compared to the previous quarter but still below the levels seen in some earlier periods. This suggests that the company took slightly longer to collect its receivables in the latest quarter.

Looking further back, there are significant variations in the DSO values. For example, the highest DSO value in recent quarters was 86.43 days in January 2020, indicating a longer collection period, while the lowest DSO of 44.01 days was recorded in July 2023, depicting a more efficient collection process.

Overall, while there have been fluctuations in Synopsys Inc's DSO over the past two years, it is essential to monitor this metric closely to ensure that the company is effectively managing its accounts receivable and maintaining healthy liquidity levels. Tracking DSO trends can provide insights into the company's operational efficiency, working capital management, and potential credit risks.