Fulgent Genetics Inc (FLGT)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.51 | 5.68 | 8.61 | 8.22 | 8.53 | 7.66 | 6.87 | 5.89 | 7.07 | 8.45 | 6.06 | 3.57 | 2.09 | 1.36 | 3.15 | 5.45 | 4.95 | 5.61 | 4.50 | 4.82 | |
| DSO | days | 66.20 | 64.22 | 42.41 | 44.38 | 42.80 | 47.67 | 53.12 | 61.93 | 51.60 | 43.21 | 60.19 | 102.18 | 174.55 | 267.68 | 116.02 | 66.94 | 73.73 | 65.12 | 81.11 | 75.75 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.51
= 66.20
Fulgent Genetics Inc's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payments after making a sale. A lower DSO typically indicates that the company is efficient in collecting payments from customers, while a higher DSO may suggest potential issues with accounts receivable management or potential liquidity concerns.
Analyzing Fulgent Genetics Inc's DSO data over the past eight quarters reveals fluctuations in the collection efficiency of the company. In Q4 2023, the DSO was 64.53 days, a decrease from the prior quarter's 69.62 days. This reduction suggests an improvement in the company's ability to collect payments promptly. However, it is important to note that the DSO in Q4 2023 is higher than in Q4 2022, indicating a potential deterioration in collection efficiency compared to the same period the previous year.
Looking at the trend over the past eight quarters, Fulgent Genetics Inc experienced a significant increase in DSO in Q3 2022, reaching 54.18 days, followed by a gradual decline in subsequent quarters until Q2 2023 when the DSO dropped to 47.12 days. This decline was then followed by a slight increase in Q3 2023 before the aforementioned decrease in Q4 2023.
Overall, while the recent reduction in DSO is a positive indicator for Fulgent Genetics Inc's cash flow management, continued monitoring is recommended to ensure sustained efficiency in accounts receivable collection. Additionally, comparisons to industry benchmarks and peer companies can provide further context for evaluating the company's performance in this area.
Peer comparison
Dec 31, 2023