Cadence Design Systems Inc (CDNS)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		8.27	7.26	8.79	7.86	7.58
DSO	days	44.11	50.26	41.52	46.42	48.15

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.27
= 44.11

The Days of Sales Outstanding (DSO) is a measure of how efficiently a company collects payments from its customers. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable.

Looking at the DSO trend for Cadence Design Systems, Inc. over the past five years, we can see fluctuations in the metric:
- As of December 31, 2023, the DSO stands at 43.66 days, which is lower compared to the previous year.
- In contrast, the DSO was 49.88 days as of December 31, 2022, showing a decrease in efficiency in collecting payments compared to the year before.
- On January 1, 2022, the DSO was 41.24 days, which was the lowest in the provided data set.
- The DSO increased to 46.05 days as of January 2, 2021, compared to the previous year.
- Finally, on December 28, 2019, the DSO was 47.58 days, which shows a slight improvement from the following year.

Overall, there have been fluctuations in Cadence Design Systems, Inc.'s DSO over the past five years. It is essential for the company to effectively manage its accounts receivable and collections process to ensure timely payments, maintain healthy cash flow, and improve overall financial performance.