FormFactor Inc (FORM)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		7.12	8.45	6.64	6.44	5.99
DSO	days	51.24	43.20	54.98	56.65	60.89

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.12
= 51.24

FormFactor Inc's Days Sales Outstanding (DSO) is a measure of how long it takes the company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments more quickly, which can be a positive sign of efficient cash flow management.

From the data provided:
- In 2023, the DSO was 51.24 days, which was higher than the previous year, indicating a slight deterioration in the collection of receivables.
- In 2022, the DSO decreased to 43.20 days, which was a positive sign of more efficient collections compared to 2021.
- In 2021, the DSO was 54.98 days, higher than 2022 but lower than 2020, suggesting a need for improvement in receivables management.
- In 2020, the DSO was 56.65 days, showing a slight increase from 2019, indicating a potential delay in collecting payments.
- In 2019, the DSO was 60.89 days, the highest in the five-year period, indicating a longer collection period for accounts receivable.

Overall, FormFactor Inc has shown fluctuations in its DSO over the years, with varying levels of efficiency in collecting payments. It is advisable for the company to analyze the reasons behind these changes and implement strategies to optimize its accounts receivable management for improved cash flow and financial performance.