Walmart Inc (WMT)

Days of sales outstanding (DSO)

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Receivables turnover		73.68	74.06	79.94	81.34	77.06	73.02	78.15	75.06	69.17	77.83	92.77	97.09	85.81	95.10	106.05	106.32	83.38	92.85	96.24	96.53
DSO	days	4.95	4.93	4.57	4.49	4.74	5.00	4.67	4.86	5.28	4.69	3.93	3.76	4.25	3.84	3.44	3.43	4.38	3.93	3.79	3.78

January 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 73.68
= 4.95

Days of Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company manages its accounts receivable. It indicates the average number of days it takes for a company to collect payment after making a sale.

Analyzing Walmart Inc's DSO over the past several quarters, we observe a fluctuating trend. In the most recent quarter, ending January 31, 2024, Walmart's DSO stood at 4.95 days, showing a slight increase compared to the previous quarter's 4.93 days. Despite this minor uptick, the DSO remains relatively low, indicating that Walmart is efficient in collecting payments from its customers.

Looking back further, we see that Walmart's DSO has been somewhat volatile but generally within a reasonably tight range. There was a notable low point in the third quarter of fiscal year 2021, where the DSO hit 3.76 days, indicating exceptional efficiency in collecting payments.

Overall, Walmart's DSO trend suggests that the company has effectively managed its accounts receivable and maintained a solid level of efficiency in collecting payments from customers. A consistently low DSO is a positive sign as it implies quicker cash conversion, which can improve liquidity and working capital management for the company.