Cognex Corporation (CGNX)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 6.26 7.08 7.87 7.70 6.19
DSO days 58.35 51.55 46.38 47.38 58.96

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.26
= 58.35

Based on the historical data provided, Cognex Corporation's Days Sales Outstanding (DSO) has shown a decreasing trend from 58.96 days as of December 31, 2020, to 47.38 days as of December 31, 2021, further decreasing to 46.38 days as of December 31, 2022. However, there was a slight increase to 51.55 days as of December 31, 2023, followed by another increase to 58.35 days as of December 31, 2024.

The decreasing trend observed up to December 31, 2022, suggests that Cognex was efficient in collecting its accounts receivable, indicating effective credit management or improvements in its sales cycle. However, the subsequent increases in DSO in 2023 and 2024 may imply potential challenges in collecting payments from customers or changes in sales terms.

Overall, Cognex Corporation should continue to monitor its DSO closely to ensure timely collection of receivables and maintain healthy cash flow levels. The fluctuations in DSO highlight the importance of closely managing credit policies and customer payment behaviors to optimize working capital management and overall financial performance.