Fulgent Genetics Inc (FLGT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.51 | 8.53 | 7.07 | 2.09 | 4.95 | |
| DSO | days | 66.20 | 42.80 | 51.60 | 174.55 | 73.73 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.51
= 66.20
Fulgent Genetics Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue after making a sale. The trend in DSO over the last five years shows fluctuations in the efficiency of the company's accounts receivable management.
In 2023, DSO stood at 64.53 days, indicating an increase from the previous year. This may suggest that the company took longer to convert sales into cash in the most recent period. However, compared to the exceptionally high DSO of 175.43 days in 2020, there has been a marked improvement in collection efficiency.
The DSO of 44.29 days in 2022 was the lowest in the given period, indicating a strong ability to collect revenue promptly. The increase in 2023 should be further investigated to understand the reasons behind the change and whether it is a temporary fluctuation or a concerning trend.
The DSO values in 2021 and 2019 were 52.61 days and 79.10 days, respectively, showing variations in collection efficiency in these years. Overall, while Fulgent Genetics Inc has shown improvements in managing its accounts receivable in recent years, monitoring DSO closely and implementing strategies to minimize collection times will be important for maintaining healthy cash flow.
Peer comparison
Dec 31, 2023