Alpha and Omega Semiconductor Ltd (AOSL)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019
Receivables turnover		42.01	46.84	19.38	18.24	29.18	34.17	14.47	14.11	11.70	13.83	12.67	16.65	17.26	17.82	21.64	18.95	34.85	26.01	13.45	11.53
DSO	days	8.69	7.79	18.83	20.01	12.51	10.68	25.23	25.87	31.19	26.39	28.80	21.93	21.15	20.49	16.87	19.26	10.47	14.03	27.14	31.66

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 42.01
= 8.69

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

Analyzing the trend of Alpha and Omega Semiconductor Ltd's DSO over the past several quarters, we can observe fluctuations in their collection efficiency. The DSO has varied between periods, reflecting changes in the company's ability to manage accounts receivable effectively.

In the latest quarter, the DSO stood at 8.69 days, showing an improvement from the previous quarter's 7.79 days. This decrease in DSO suggests that the company has enhanced its collection processes and is collecting payments more promptly.

Looking further back, we see that the DSO has experienced some volatility, with peaks and troughs recorded in different quarters. The highest DSO of 31.66 days was seen in the third quarter of 2019, indicating a longer collection period, while the lowest DSO of 7.79 days in the first quarter of 2024 reflects efficient accounts receivable management during that period.

Overall, Alpha and Omega Semiconductor Ltd's DSO trend indicates fluctuations in the efficiency of their accounts receivable collection process. Continuous monitoring of DSO can provide insights into the company's liquidity, cash flow management, and overall operational efficiency.