Digi International Inc (DGII)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		7.19	7.94	8.64	8.65	7.59	7.70	5.85	5.00	6.48	7.06	7.33	6.66	5.53	4.72	5.03	3.34	3.13	4.51	5.69	4.78
DSO	days	50.78	45.95	42.22	42.20	48.09	47.43	62.38	72.99	56.35	51.73	49.77	54.77	66.05	77.41	72.55	109.39	116.44	81.01	64.17	76.43

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.19
= 50.78

To analyze Digi International, Inc.'s Days Sales Outstanding (DSO), we first observe a decreasing trend in DSO over the past quarters, indicating the company's efficiency in collecting accounts receivable and managing credit policies. The DSO decreased from 72.99 days in Q2 2022 to 50.78 days in Q1 2024, reflecting an improvement in the company's collections process.

The lower DSO in more recent quarters suggests that Digi International is collecting payments from customers more quickly, possibly indicating effective credit control measures or improved accounts receivable management. Furthermore, a decreasing DSO trend can also indicate increasing sales or better credit terms with customers.

However, despite the general decreasing trend, the DSO increased slightly in Q4 2023 compared to Q3 2023, which could warrant further investigation into any specific reasons for the temporary deviation.

Overall, a declining DSO trend indicates positive liquidity management and efficient collections processes at Digi International, which may be a favorable sign for the company's financial health and operational effectiveness.