Synnex Corporation (SNX)

Days of sales outstanding (DSO)

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Receivables turnover		5.59	6.62	3.80	5.16	4.86
DSO	days	65.31	55.16	95.94	70.72	75.16

November 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.59
= 65.31

To analyze TD Synnex Corp's days of sales outstanding (DSO), we can observe the trend over the past five years. DSO measures the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO indicates that the company is collecting receivables more efficiently.

In 2023, the DSO is 71.42 days, which is an increase from the previous year's 59.95 days. This suggests that the company took longer to collect payments from its customers in 2023 compared to 2022. It is important to assess the reasons behind this increase, as a higher DSO can tie up the company's working capital and create liquidity challenges.

Comparing 2023 to 2021, we see a significant improvement in DSO, decreasing from 108.86 days to 71.42 days. This represents a positive trend, indicating that the company has been more efficient in collecting receivables in 2023 than in 2021. However, it's worth noting that the DSO in 2021 was unusually high, suggesting possible issues with receivables management during that period.

Looking further back, in 2020 and 2019, the DSO was 61.49 days and 65.99 days, respectively. The increase in DSO in 2023 compared to these years indicates a departure from the previously observed trend of efficient receivables management.

Overall, the analysis of TD Synnex Corp's DSO reveals fluctuating trends in receivables collection efficiency over the past five years. It would be important for stakeholders to delve deeper into the reasons behind these fluctuations to determine the impact on the company's financial performance and working capital management.