Varex Imaging Corp (VREX)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.46 | 4.96 | 5.27 | 5.96 | 5.54 | |
| DSO | days | 66.84 | 73.60 | 69.29 | 61.20 | 65.93 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.46
= 66.84
To analyze Varex Imaging Corp's Days Sales Outstanding (DSO) over the past five years, we observe that the trend has fluctuated within a range.
In Sep 2023, the DSO stands at 66.84 days, showing an improvement from the prior year's figure of 73.60 days. This decrease in DSO indicates that the company has been more efficient in converting its accounts receivable into cash during the most recent period.
Comparing this to the DSO of 69.29 days in Sep 2021 and 61.20 days in Sep 2020, we can see a mixed trend with occasional dips and spikes. Nevertheless, the DSO in Sep 2023 remains lower than the levels seen in 2020 and 2021, suggesting potential improvements in the company's credit and collection policies.
It is notable that the DSO in Sep 2019 was 65.93 days, somewhat comparable to the current DSO. This stability over the five-year period implies that Varex Imaging Corp has been consistent in managing its accounts receivable in relation to its sales revenue.
In conclusion, while there have been fluctuations in Varex Imaging Corp's DSO over the past five years, the recent decrease in DSO indicates a positive trend towards improved efficiency in collecting outstanding receivables. Continued monitoring of this metric will be crucial to evaluate the effectiveness of the company's credit control measures and overall liquidity management.
Peer comparison
Sep 30, 2023