DexCom Inc (DXCM)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		3.65	3.84	4.54	4.25	4.88
DSO	days	100.03	95.03	80.44	85.82	74.81

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.65
= 100.03

Dexcom Inc's Days Sales Outstanding (DSO) has shown an increasing trend over the past five years, indicating a lengthening of the average time it takes for the company to collect its accounts receivable.

In 2019, the DSO stood at 70.80 days and has since increased to 99.51 days by the end of 2023. This suggests a deterioration in the company's efficiency in collecting payments from customers, potentially pointing to issues in credit and collection policies, or difficulties in managing receivables.

The upward trend in DSO may increase the risk of cash flow problems, as a higher DSO indicates that cash is tied up in accounts receivable for a longer period, potentially impacting liquidity and working capital management.

It is important for Dexcom Inc to closely monitor and analyze its accounts receivable management to address the increasing DSO trend and improve the efficiency of its collection processes to maintain healthy cash flows and financial stability.