Cirrus Logic Inc (CRUS)

Days of sales outstanding (DSO)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Receivables turnover		8.78	11.01	12.61	7.41	12.60
DSO	days	41.58	33.15	28.94	49.23	28.98

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.78
= 41.58

The Days Sales Outstanding (DSO) trend for Cirrus Logic Inc indicates a varying pattern over the past five years. In March 2021, the DSO stood at 28.98 days and increased significantly to 49.23 days by March 2022. However, in the following year, the DSO dropped back to a similar level as in 2021, at 28.94 days. By March 2024, there was a slight increase to 33.15 days, followed by a further increment to 41.58 days by March 2025.

This fluctuation in DSO suggests potential changes in the company's accounts receivable management efficiency. A lower DSO indicates faster collection of sales revenue, which is favorable for cash flow and liquidity, while a higher DSO may indicate delays in receiving payments from customers. Monitoring this metric can help in assessing the effectiveness of Cirrus Logic Inc's credit policies and collection procedures over time, allowing for adjustments as needed to optimize working capital management.