Diodes Incorporated (DIOD)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		4.44	5.41	5.01	3.77	4.85
DSO	days	82.14	67.45	72.88	96.74	75.30

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.44
= 82.14

The days sales outstanding (DSO) ratio for Diodes, Inc. has shown some fluctuations over the past five years. In 2023, the DSO stands at 81.69 days, representing an increase from the previous year's 67.37 days. This implies that, on average, it takes Diodes, Inc. 81.69 days to collect its accounts receivable.

Compared to 2019 and 2021, where the DSO was 76.07 days and 72.49 days respectively, the 2023 figure suggests a deterioration in the company's collection efficiency. On the other hand, the DSO in 2020 was relatively high at 95.04 days, indicating that the company improved its accounts receivable collection in 2023 compared to that year.

Overall, Diodes, Inc.'s management should closely monitor its accounts receivable collection process to ensure timely payments from customers and maintain a healthy cash flow. A decreasing trend in DSO would indicate an improvement in the company's efficiency in collecting outstanding payments.