Seagate Technology PLC (STX)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.48 | 9.37 | 7.61 | 9.22 | 9.43 | |
| DSO | days | 31.78 | 38.95 | 47.95 | 39.57 | 38.73 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.48
= 31.78
Based on the data provided, Seagate Technology PLC's Days Sales Outstanding (DSO) has shown a decreasing trend over the past five years.
In the most recent year ended June 30, 2024, the DSO was 31.78 days, which indicates that on average, Seagate collects its accounts receivable in approximately 31.78 days. This is a notable improvement from the prior year where the DSO was 38.95 days, suggesting a quicker collection of receivables.
Comparing the current DSO to the DSO figures from previous years, we see a significant reduction in DSO from 47.95 days in 2022 to 31.78 days in 2024. This could imply that Seagate has been more efficient in managing its accounts receivable and collecting payments from its customers promptly.
Overall, the decreasing trend in DSO is a positive indicator of Seagate's effectiveness in managing its credit and collection policies, which may lead to improved cash flow and liquidity for the company. It also suggests that Seagate has been successful in maintaining strong customer relationships and managing its working capital efficiently in recent years.
Peer comparison
Jun 30, 2024