ADEIA CORP (ADEA)

Days of sales outstanding (DSO)

		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
Receivables turnover		3.39	3.18	3.74	3.64	3.32	1.84	2.25	3.06	3.44	3.02	2.52	2.29
DSO	days	107.56	114.88	97.60	100.38	109.96	198.70	162.23	119.42	106.10	120.81	144.79	159.63

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.39
= 107.56

ADEIA CORP's Days Sales Outstanding (DSO) is a measure of how long it takes the company to collect payments on its sales. A decreasing DSO indicates that the company is collecting payments more quickly, while an increasing DSO may suggest inefficiencies in accounts receivable management.

Looking at the trend in ADEIA CORP's DSO over the past year, there are fluctuations in the values. In the most recent quarter, ending December 31, 2023, the DSO decreased to 107.56 days from 114.88 days in the previous quarter. This could imply that the company improved its collections process, leading to faster receipt of payments from customers.

Comparing the DSO to the same period in the prior year, there seems to have been a significant improvement from 198.70 days in September 2022 to 107.56 days in December 2023. This suggests that the company has made substantial efforts in managing its accounts receivable more efficiently.

However, it is worth noting that there were some fluctuations in DSO throughout the year, which could indicate seasonal factors or changes in the company's sales patterns. It would be beneficial for ADEIA CORP to continue monitoring and analyzing its DSO to ensure consistent improvements and optimize its cash flow management.