Advanced Micro Devices Inc (AMD)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Receivables turnover		3.81	3.38	4.08	4.54	3.54	4.39	5.09	—	4.53	5.24	5.31	5.12	5.41	6.64	6.56	5.20	4.43	4.01	4.18	3.75
DSO	days	95.86	107.96	89.54	80.34	103.18	83.15	71.70	—	80.65	69.59	68.69	71.28	67.49	54.96	55.66	70.17	82.39	91.04	87.33	97.37

December 31, 2024 calculation

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

Days Sales Outstanding (DSO) is a financial metric that measures the average number of days a company takes to collect revenue after a sale has been made. For Advanced Micro Devices Inc, the DSO has fluctuated over the past few years.

From March 31, 2020, to June 30, 2021, the DSO showed a decreasing trend, indicating the company was able to collect receivables more efficiently during this period. This could be a positive sign of effective credit and collection management.

However, from September 30, 2021, to December 31, 2024, the DSO began to increase, reaching its peak at 107.96 days on September 30, 2024. This upward trend in DSO may suggest potential challenges in collecting outstanding customer payments, which could impact the company's cash flow and liquidity.

It is essential for Advanced Micro Devices Inc to monitor and manage its DSO effectively to ensure timely collection of receivables and maintain a healthy financial position. Further analysis of the reasons behind the fluctuations in DSO would be beneficial for the company to address any underlying issues and improve its overall financial performance.