Garmin Ltd (GRMN)

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		6.39	6.50	6.99	7.89	6.45	7.08	6.90	—	7.38	7.63	7.09	8.43	5.87	7.68	6.58	7.88	4.92	5.97	7.12	7.64
DSO	days	57.15	56.17	52.19	46.24	56.63	51.57	52.87	—	49.43	47.84	51.46	43.27	62.17	47.51	55.44	46.30	74.20	61.12	51.29	47.75

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.39
= 57.15

Days of Sales Outstanding (DSO) is a financial metric used to evaluate how efficiently a company manages its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally favorable.

Analyzing the DSO trend of Garmin Ltd from March 31, 2020, to December 31, 2024, we observe fluctuations in the number of days it takes for the company to collect on its sales invoices.

- The DSO was 47.75 days on March 31, 2020, and ranged between 43.27 to 74.20 days until December 31, 2022.
- From March 31, 2020, to December 31, 2022, the DSO fluctuated within a considerable range, indicating possible challenges in collecting receivables or changes in sales credit terms.
- Notably, there was a significant decrease in DSO to 43.27 days on March 31, 2022, which might imply an improvement in receivables management efficiency.
- The DSO stayed relatively stable between 43.27 and 57.15 days from March 31, 2022, to December 31, 2024, indicating consistent performance in collecting on sales.

Overall, Garmin Ltd's DSO trend suggests variations in the efficiency of accounts receivable collections over the period, with potential improvements in managing credit and collections strategies in recent years, leading to more timely cash inflows.