Advanced Micro Devices Inc (AMD)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		3.53	4.53	5.40	4.42	3.18
DSO	days	103.33	80.65	67.54	82.51	114.96

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.53
= 103.33

Advanced Micro Devices Inc's Days Sales Outstanding (DSO) measures how long it takes for the company to collect revenue from its sales. A longer DSO indicates slower collections, potentially impacting cash flow and liquidity.

Analyzing the trend of AMD's DSO over the past five years, we can observe fluctuations. In 2019, the DSO was relatively high at 114.96 days, suggesting a slower collection process. However, there was a notable improvement in 2021 with the DSO decreasing to 67.54 days, indicating more efficient collections.

In 2022, there was a further decrease to 80.65 days, showing continued improvement in the collection process. However, by 2023, the DSO increased to 103.33 days, indicating a possible slowdown in collections compared to the previous year.

Overall, it is important for AMD to closely monitor its DSO to ensure timely collection of receivables, which can positively impact cash flow and liquidity management.