Calix Inc (CALX)

Days Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes for a company to collect payment from its customers after making a sale. A lower DSO indicates that the company is collecting payments more quickly, whereas a higher DSO may signal potential issues with accounts receivable management and liquidity.

Analyzing Calix Inc's DSO over the past five years, we observe fluctuations in the metric:
- In 2019, the DSO was 40.01 days, indicating that, on average, it took the company around 40 days to collect payments from customers.
- In 2020, the DSO increased to 46.81 days, suggesting a lengthening of the collection period compared to the previous year.
- In 2021, the DSO decreased to 45.78 days, showing some improvement in collections efficiency.
- In 2022, the DSO declined further to 39.45 days, indicating a more efficient collection process.
- In 2023, the DSO increased slightly to 44.25 days, still lower than the 2020 level but higher than in 2022.

The trend in DSO for Calix Inc indicates some variability in the company's ability to collect payments from customers promptly. A downward trend in DSO, as observed from 2020 to 2022, can be a positive sign of improved accounts receivable management and cash flow generation. However, the slight increase in DSO in 2023 compared to the previous year may warrant monitoring to ensure that collections remain efficient.

Overall, understanding the underlying reasons for changes in DSO and identifying opportunities to streamline the accounts receivable process can help Calix Inc maintain healthy liquidity and working capital management.

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Dec 31, 2023