Enphase Energy Inc (ENPH)

Days of sales outstanding (DSO)

		Dec 31, 2024	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
Receivables turnover		5.95	5.38	5.12	5.02	5.14	4.84	5.37	5.07	5.29	5.49	5.56	4.25	4.14	4.52	3.77	3.69	4.25	5.88	8.06	7.64
DSO	days	61.39	67.80	71.30	72.75	71.06	75.38	67.91	72.02	69.04	66.47	65.70	85.95	88.11	80.74	96.71	98.98	85.86	62.08	45.30	47.76

December 31, 2024 calculation

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

Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates a faster collection of accounts receivable, which is generally favorable as it implies better liquidity and efficiency in managing the company's working capital.

Analyzing the DSO trend of Enphase Energy Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the collection period. The DSO decreased from 47.76 days on March 31, 2020, to a low of 45.30 days on June 30, 2020, indicating efficient collections. However, the DSO increased steadily, reaching a peak of 98.98 days on March 31, 2021, before gradually decreasing and stabilizing around the 60-70 day range in the following periods.

The increase in DSO in early 2021 may signal challenges in collecting accounts receivable promptly, leading to a longer cash conversion cycle. The subsequent improvement and stabilization suggest that Enphase Energy Inc may have implemented measures to enhance its credit policies or streamline its collection processes. Overall, monitoring DSO can provide insights into the effectiveness of Enphase Energy Inc's credit and collection management strategies and its overall financial health.