ADEIA CORP (ADEA)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Receivables turnover | 3.39 | 3.32 | 1.77 | 2.08 | |
| DSO | days | 107.56 | 109.96 | 206.53 | 175.74 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.39
= 107.56
Based on the historical data provided, ADEIA CORP's days of sales outstanding (DSO) have shown fluctuations over the past four years.
In 2023, the DSO was 107.56 days, showing an improvement from the previous year's DSO of 109.96 days in 2022. This decrease may indicate that the company is collecting its accounts receivable more efficiently in 2023.
However, when comparing the 2023 DSO to earlier years, it is evident that there has been a significant improvement from 2021 and 2020. In 2021, the DSO was considerably high at 206.53 days, suggesting that ADEIA CORP took a longer time to collect its outstanding sales. The DSO improved in 2022 but was still relatively high compared to the most recent year.
Overall, the trend in DSO for ADEIA CORP has shown improvements, indicating better efficiency in managing accounts receivable and collecting sales revenue. It is essential for the company to maintain this trend and continue to monitor and manage its DSO to ensure healthy cash flow and working capital management.
Peer comparison
Dec 31, 2023