Advanced Micro Devices Inc (AMD)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		3.81	3.53	4.53	5.40	4.42
DSO	days	95.86	103.33	80.65	67.54	82.51

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.81
= 95.86

The days of sales outstanding (DSO) for Advanced Micro Devices Inc have exhibited some fluctuations over the past five years. As of December 31, 2020, the company's DSO stood at 82.51 days, indicating the average number of days it takes for the company to collect revenue from its sales.

Over the next year, the DSO improved to 67.54 days by December 31, 2021, demonstrating more efficient management of accounts receivable. However, by December 31, 2022, the DSO increased slightly to 80.65 days, suggesting a potential delay in collecting payments from customers.

Furthermore, by December 31, 2023, the DSO surged to 103.33 days, which may raise concerns about the company's credit policies or customer payment behavior. The following year, on December 31, 2024, the DSO decreased to 95.86 days but still remained elevated compared to earlier years.

Overall, the trend in Advanced Micro Devices Inc's DSO indicates periods of improvement and challenges in managing accounts receivable efficiently. Further analysis of the underlying factors influencing DSO fluctuations may be necessary to assess the effectiveness of the company's credit and collection practices.