Cirrus Logic Inc (CRUS)

Days of sales outstanding (DSO)

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Sep 23, 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
Receivables turnover		8.78	7.04	5.88	9.71	12.02	8.74	6.07	6.48	9.79	12.61	7.45	6.48	9.20	7.41	4.86	5.42	10.28	12.60	5.53	6.85
DSO	days	41.58	51.86	62.04	37.59	30.37	41.79	60.08	56.35	37.29	28.94	49.00	56.35	39.67	49.23	75.10	67.36	35.50	28.98	65.94	53.26

March 31, 2025 calculation

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

The Days Sales Outstanding (DSO) ratio for Cirrus Logic Inc has shown variability over the past few years. Looking at the trend, the DSO increased from 53.26 days as of September 30, 2020, to a peak of 75.10 days as of December 31, 2021. This suggests that the company took longer to collect its accounts receivable during this period.

Subsequently, there was a noticeable improvement in DSO, dropping to 28.94 days by March 31, 2023, indicating a more efficient collection process. However, the ratio increased again by September 30, 2023, and peaked at 62.04 days by September 30, 2024, before decreasing to 41.58 days by March 31, 2025.

Overall, it is crucial for Cirrus Logic Inc to monitor its DSO closely to ensure efficient management of accounts receivable. A higher DSO may indicate potential issues with credit policies or collections processes, while a lower DSO may suggest aggressive credit policies that could lead to an increased risk of bad debt. Management should strive to strike a balance that ensures timely collection of receivables while maintaining good customer relationships.