Digi International Inc (DGII)

Days of sales outstanding (DSO)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		6.09	6.06	6.09	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
DSO	days	59.94	60.27	59.96	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

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.09
= 59.94

Digi International Inc's Days Sales Outstanding (DSO) is a critical metric that indicates how efficiently the company is managing its accounts receivable. A lower DSO value suggests that the company is able to collect its receivables more quickly, which can improve cash flow and liquidity.

Analyzing the trend in DSO over the past quarters reveals fluctuation in the collection efficiency of Digi International Inc. The DSO has generally decreased from a high of 116.44 days in December 2019 to a low of 42.20 days in March 2023, before experiencing some volatility since then.

The company showed significant improvement in collection efficiency in the recent quarters, with DSO declining from 72.99 days in March 2022 to around 50-60 days in the most recent quarters. This trend reflects better accounts receivable management practices and potentially more effective credit control measures.

However, it is worth noting that there was a slight increase in DSO in the last quarter, from 50.78 days in December 2023 to 59.94 days in September 2024. This increase may indicate a slowdown in collections or a lengthening of the time it takes customers to pay their invoices.

Overall, Digi International Inc's DSO trend suggests an improvement in managing accounts receivable compared to previous years, but monitoring this metric closely is essential to ensure efficient cash flow management and timely collections moving forward.