ADEIA CORP (ADEA)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		2.72	2.36	3.12	3.25	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	134.14	154.55	116.84	112.22	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, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.72
= 134.14

Days Sales Outstanding (DSO) is a key financial metric that indicates the average number of days it takes for a company to collect revenue after making a sale. A lower DSO value is generally favorable as it suggests quicker collection of receivables, while a higher DSO value may indicate potential issues with receivables management or credit policies.

Analyzing the DSO trend of ADEIA CORP from March 31, 2021, to December 31, 2024, reveals fluctuations in the collection period over time. The DSO values ranged from a high of 198.70 days on September 30, 2022, to a low of 97.60 days on June 30, 2023.

Notable observations in the DSO trend include a significant increase in DSO from June 30, 2022, to September 30, 2022, indicating a potential delay in collecting receivables during that period. However, the DSO decreased sharply by March 31, 2023, suggesting an improvement in the collection process. The DSO remained relatively stable in the subsequent periods, fluctuating within the range of 100 to 154 days.

Overall, ADEIA CORP's DSO trend reflects variations in the efficiency of accounts receivable management and collection practices. It is essential for the company to monitor DSO closely to ensure timely receipt of revenues and manage cash flow effectively.