Applied Materials Inc (AMAT)

Days of sales outstanding (DSO)

		Oct 27, 2024	Jul 28, 2024	Apr 28, 2024	Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020
Receivables turnover		5.05	5.33	5.27	5.25	4.71	4.66	4.45	4.45	3.92	4.50	—	5.00	4.13	—	—	5.67	5.50	5.49	5.61	5.37
DSO	days	72.22	68.53	69.30	69.52	77.48	78.33	81.98	82.00	93.13	81.08	—	73.06	88.47	—	—	64.41	66.31	66.52	65.01	67.96

October 27, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.05
= 72.22

Days of Sales Outstanding (DSO) is a financial metric used to measure the average number of days it takes a company to collect payments after making a sale. A lower DSO indicates that a company is collecting payments more quickly, which is generally favorable as it improves cash flow and liquidity.

Analyzing the DSO trend for Applied Materials Inc based on the provided data, we can observe the following:

1. The DSO has shown some fluctuation over the past few quarters, ranging from a low of 64.41 days to a high of 93.13 days. This variability suggests that there may be inconsistencies in the company's collection process.

2. Overall, the DSO has not exhibited a clear upward or downward trend, indicating that Applied Materials Inc has been able to maintain a relatively stable collections performance over the periods analyzed.

3. The DSO for the most recent quarter is 72.22 days, which is in line with the historical range and suggests that the company is continuing to manage its receivables effectively.

In conclusion, while Applied Materials Inc has shown variability in its DSO over the analyzed periods, the company has generally maintained a satisfactory performance in collecting payments from customers. Monitoring the DSO trend going forward will be crucial to assess the efficiency of the company's accounts receivable management.