Cirrus Logic Inc (CRUS)

Days of sales outstanding (DSO)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Receivables turnover		11.00	12.60	7.41	12.59	8.32
DSO	days	33.17	28.96	49.23	28.98	43.88

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.00
= 33.17

The Days of Sales Outstanding (DSO) is a measure of the average number of days it takes for a company to collect payments from its customers after making a sale. A lower DSO indicates that the company is able to collect cash from its customers more quickly, which is generally a positive sign.

Analyzing Cirrus Logic Inc's DSO over the past five years, we can observe fluctuations in the metric. In March 2024, the DSO stood at 33.17 days, which represents an increase from the previous year where it was 28.96 days. This suggests that the company may be taking longer to collect payments from its customers in the most recent period.

Comparing the DSO to historical data, we can see that in March 2022, Cirrus Logic Inc experienced a significantly higher DSO of 49.23 days, indicating potential difficulties in collecting payments efficiently during that period. The DSO then improved in March 2021 and March 2020, standing at 28.98 days and 43.88 days respectively.

Overall, a DSO analysis of Cirrus Logic Inc indicates some variability in the company's ability to collect payments from customers promptly. Further investigation into the underlying reasons for the fluctuations in DSO may provide insights into the company's accounts receivable management efficiency and cash flow dynamics.