Analog Devices Inc (ADI)

Days of sales outstanding (DSO)

		Nov 2, 2024	Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020
Receivables turnover		6.95	8.42	10.14	9.44	8.20	7.79	7.82	7.59	6.56	6.13	5.83	4.96	4.83	7.84	—	7.02	7.53	—	—	—
DSO	days	52.53	43.36	36.01	38.65	44.50	46.85	46.66	48.11	55.65	59.54	62.56	73.56	75.56	46.54	—	51.96	48.47	—	—	—

November 2, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.95
= 52.53

The Days of Sales Outstanding (DSO) for Analog Devices Inc has shown fluctuation over the past two years, ranging from 36.01 days to 75.56 days. Lower DSO values indicate that the company is efficient in collecting accounts receivable, while higher values suggest a potentially inefficient collection process.

Generally, a decreasing trend in DSO over time signifies improved efficiency in collecting receivables and converting sales into cash. Looking at the data, there was a noticeable decrease in DSO from 73.56 days in January 2022 to 36.01 days in May 2024, suggesting an improvement in the company's accounts receivable management.

However, it is important to note that the DSO increased to 52.53 days in November 2024, indicating a potential slowdown in collections. This could be a red flag for the company's liquidity and working capital management.

Analyzing the DSO trend over a longer period allows for a better assessment of overall accounts receivable performance. Investors and stakeholders should continue to monitor Analog Devices Inc's DSO to ensure the company maintains an optimal balance between credit sales and timely collections.