Cognex Corporation (CGNX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.08 | 7.87 | 7.70 | 6.19 | 6.70 | |
| DSO | days | 51.55 | 46.38 | 47.38 | 58.96 | 54.48 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.08
= 51.55
The Days of Sales Outstanding (DSO) ratio for Cognex Corp. has shown some fluctuations over the past five years. In 2023, the DSO stands at 50.80 days, an increase from 46.29 days in 2022 but still lower than the DSO in 2020 and 2019. This indicates that the company takes approximately 50.80 days to collect its accounts receivable from customers based on its sales.
The rise in DSO from 2022 to 2023 could suggest that Cognex Corp. is taking slightly longer to collect payments from its customers, which may raise concerns about its credit policies or the quality of its accounts receivable. However, it is important to consider industry norms and seasonal variations when interpreting DSO ratios.
Overall, Cognex Corp. should monitor its DSO closely to ensure efficient management of its accounts receivable and timely collection of cash inflows, which is crucial for maintaining a healthy cash flow position.
Peer comparison
Dec 31, 2023