Garmin Ltd (GRMN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.45	7.39	5.85	4.93	5.29
DSO	days	56.63	49.42	62.35	73.98	68.96

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.45
= 56.63

Garmin Ltd's days of sales outstanding (DSO) have fluctuated over the past five years. In 2023, the DSO stands at 56.63 days, showing an increase from the previous year's 49.42 days. This indicates that, on average, it takes Garmin approximately 56.63 days to collect payments from its customers for sales made.

Comparing the DSO over a longer timeframe, we observe a significant improvement from the highest DSO of 73.98 days in 2020 to the current level in 2023. A decreasing trend in DSO generally suggests that the company is managing its accounts receivable more efficiently. However, the slight increase in 2023 indicates a potential delay in collecting payments, which may require further investigation to ensure the company's cash flow remains healthy.

Overall, Garmin Ltd's DSO provides insights into its receivables management and collection efficiency, serving as a valuable metric for assessing the company's financial performance and liquidity position.