Arlo Technologies (ARLO)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.61 | 7.48 | 5.48 | 4.61 | 3.36 | |
| DSO | days | 47.99 | 48.80 | 66.66 | 79.11 | 108.78 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.61
= 47.99
The days of sales outstanding (DSO) for Arlo Technologies Inc have shown a decreasing trend over the past five years, indicating an improvement in the efficiency of the company's accounts receivable management.
In 2019, the DSO stood at a relatively high level of 125.59 days, reflecting a slower collection of accounts receivable. However, over the subsequent years, there has been a steady reduction in the DSO figure. By the end of 2023, the DSO has decreased to 48.57 days, demonstrating a significant enhancement in the company's ability to collect payments from customers promptly.
The declining trend in DSO suggests that Arlo Technologies Inc has become more efficient in converting its accounts receivable into cash, which is a positive signal for the company's liquidity and cash flow management. This improvement potentially indicates effective credit policies, streamlined collection processes, and stronger customer creditworthiness.
Peer comparison
Dec 31, 2023