Bio-Techne Corp (TECH)

Days of sales outstanding (DSO)

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Receivables turnover		4.80	4.99	5.45	5.53	5.21	5.20	6.06	6.42	5.62	5.27	6.65	6.59	6.31	5.31	6.13	6.08	5.91	6.30	6.53	5.85
DSO	days	76.00	73.13	66.97	65.98	70.12	70.20	60.19	56.89	64.89	69.31	54.86	55.43	57.86	68.79	59.52	60.01	61.77	57.94	55.92	62.37

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.80
= 76.00

Days Sales Outstanding (DSO) is a measure used to evaluate how efficiently a company is collecting its accounts receivable. It indicates the average number of days it takes for a company to collect payment after a sale has been made.

Analyzing the DSO trend of Bio-Techne Corp over the past few quarters, we observe fluctuations in the collection period. The DSO values have ranged from a low of 54.86 days to a high of 76.00 days, indicating variability in the company's collection efficiency.

In recent quarters, there has been an upward trend in DSO, with the metric increasing from 54.86 days in March 2022 to 76.00 days in June 2024. This suggests that Bio-Techne Corp may be facing challenges in collecting payments promptly from its customers.

It is important for the company to closely monitor and manage its accounts receivable collection process to ensure that outstanding payments are collected in a timely manner. A higher DSO can lead to cash flow issues and potentially impact the company's liquidity position.

Further analysis of the underlying reasons for the increase in DSO, such as changes in customer payment behavior, credit policy, or sales volume, would be beneficial in determining the appropriate strategies to improve collection efficiency and maintain healthy cash flow levels.