Cisco channel stuffing and days sales outstanding (DSO) appear out of control
For the 3-months ended July 27, 2013 Cisco's Q4'FY13 accounts receivables increased a stunning +$1.101 billion on a mere net sales increase of just +$727 million. In my personal opinion, it now appears that Cisco's had 2 consecutive quarters of out of control channel stuffing along with out of control days sales outstanding (DSO).
Earlier today I received the following private email message:
So I looked into Cisco's Q4'FY13 accounts receivables and here's what I found:
For the 3-months ended July 27, 2013 Cisco's Q4'FY13 accounts receivables increased a stunning +$1.101 billion on a mere net sales increase of just +$727 million.
Simultaneously, Cisco's Q4'FY13 days sales outstanding (DSO) soared to 40 vs. Cisco's Q4'FY12 days sales outstanding (DSO) of only 34.
In the previous quarter, Cisco's Q3'FY13 accounts receivable increased +$962 million on a mere net sales increase of only +$628 million, while Q3'FY13 DSO soared to 37 vs. Cisco's Q3'FY12 DSO of only 31.
In my personal opinion, it now appears that Cisco's had 2 consecutive quarters of out of control channel stuffing along with out of control days sales outstanding (DSO).
