Sonos Inc (SONO)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 24.59 | 17.20 | 17.03 | 24.11 | 12.20 | |
| DSO | days | 14.84 | 21.22 | 21.43 | 15.14 | 29.92 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 24.59
= 14.84
To analyze the days of sales outstanding (DSO) of Sonos Inc, we can observe the trend in the DSO over the past five years. The DSO measures the average number of days a company takes to collect revenue after a sale has been made. A lower DSO is generally favorable as it indicates quicker collection of receivables.
Based on the data provided, we observe that Sonos Inc's DSO has fluctuated over the past five years. In 2023, the DSO decreased to 14.90 days from 21.08 days in 2022, showing an improvement in the collection of receivables. This trend indicates that the company has been able to collect its sales revenue more efficiently in the most recent period.
Comparing the DSO in 2023 to 2019, there has been a significant reduction from 29.74 days to 14.90 days, indicating a notable improvement in the company's receivables collection efficiency over the past five years.
Overall, the decreasing trend in Sonos Inc's DSO suggests an improvement in the collection of sales revenue, reflecting positively on the company's liquidity and operational efficiency in managing its accounts receivables. However, it is essential to consider other factors such as industry norms and company-specific circumstances when interpreting DSO.
Peer comparison
Sep 30, 2023