Analog Devices Inc (ADI)

Days of sales outstanding (DSO)

		Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Receivables turnover		7.06	8.20	6.56	4.75	7.33
DSO	days	51.67	44.50	55.63	76.83	49.76

November 2, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.06
= 51.67

The days of sales outstanding (DSO) ratio for Analog Devices Inc has shown variability over the past five years. In 2024, the DSO stands at 51.67 days, reflecting the number of days it takes for the company to collect its accounts receivable. This represents an increase from the previous year's DSO of 44.50 days in 2023. The DSO in 2022 was 55.63 days, indicating a slight decrease from 2021 when it was 76.83 days, a significant improvement. In 2020, the DSO was 49.76 days.

The fluctuation in the DSO ratio suggests potential changes in the company's credit policies, efficiency in collecting receivables, or shifts in customer payment behavior. A decreasing DSO ratio generally indicates improved efficiency in accounts receivable management, while an increasing DSO ratio may signal difficulties in collecting payments promptly. Therefore, it would be important for stakeholders to monitor this ratio over time to assess Analog Devices Inc's credit and collection practices.