Enphase Energy Inc (ENPH)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		5.95	5.14	5.29	4.14	4.25
DSO	days	61.39	71.06	69.04	88.11	85.86

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.95
= 61.39

Based on the data provided, the days of sales outstanding (DSO) for Enphase Energy Inc have shown a somewhat fluctuating trend over the years. In December 31, 2020, the DSO was 85.86 days, which increased slightly to 88.11 days by December 31, 2021. However, there was a significant improvement in collection efficiency by December 31, 2022, with the DSO decreasing to 69.04 days. This trend continued into December 31, 2023, where the DSO stayed relatively low at 71.06 days. By December 31, 2024, Enphase Energy Inc managed to further improve its collection efficiency, with a DSO of 61.39 days.

Overall, the trend in DSO indicates that Enphase Energy Inc has been effectively managing its accounts receivable and collecting its sales revenues in a timely manner, especially evident in the decreasing DSO numbers from 2022 onwards. This reduction in DSO reflects a positive sign for the company's financial health and operational efficiency in converting sales into cash.