Cadence Design Systems Inc (CDNS)

Days of sales outstanding (DSO)

		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	Jun 30, 2019	Mar 31, 2019
Receivables turnover		8.28	9.09	8.54	7.48	7.26	8.72	8.33	8.66	8.79	9.04	7.36	7.15	7.86	8.30	7.70	8.27	7.58	8.31	9.42	8.21
DSO	days	44.10	40.14	42.76	48.82	50.25	41.84	43.81	42.14	41.52	40.39	49.57	51.03	46.42	43.97	47.41	44.11	48.15	43.91	38.76	44.46

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.28
= 44.10

Cadence Design Systems, Inc.'s Days of Sales Outstanding (DSO) has exhibited fluctuating trends over the past eight quarters. In Q4 2023, the DSO stood at 43.66 days, which was higher compared to the previous quarter at 39.70 days. This increase suggests a potential delay in collecting accounts receivable, which may impact the company's cash flow efficiency.

Looking at the year-on-year comparison, the Q4 2023 DSO of 43.66 days was slightly lower than the DSO of 49.88 days in Q4 2022. This could indicate improved receivables management compared to the same period last year. However, the absolute value of 43.66 days still indicates that Cadence Design Systems, Inc. takes around 43.66 days on average to collect its sales revenue.

Overall, while there have been fluctuations in Cadence Design Systems, Inc.'s DSO over the past quarters, it is essential for the company to assess its credit policies, collections practices, and customer payment patterns to effectively manage its working capital and ensure timely collection of accounts receivable.