Garmin Ltd (GRMN)

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		6.44	7.07	6.89	—	7.38	7.63	7.09	8.43	5.87	7.68	6.58	7.88	4.92	5.97	7.12	7.64	5.30	6.41	5.93	7.50
DSO	days	56.71	51.65	52.95	—	49.43	47.84	51.46	43.27	62.17	47.51	55.44	46.30	74.20	61.12	51.29	47.75	68.82	56.95	61.55	48.65

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.44
= 56.71

Days of Sales Outstanding (DSO) is a measure used to evaluate how efficiently a company collects its accounts receivable. A lower DSO indicates that the company is collecting payments from its customers more quickly.

In the case of Garmin Ltd, the DSO has shown some fluctuations over the periods analyzed. On average, Garmin has maintained a DSO ranging from around 43 days to 74 days over the past few years.

The trend in DSO for Garmin shows some variability, with some quarters experiencing higher DSO than others. For instance, the DSO increased notably in the fourth quarter of 2020 and the first quarter of 2021, before decreasing in subsequent quarters. This variability could suggest changes in the company's credit policies, collection practices, or the payment behavior of its customers.

Overall, the company appears to have a relatively consistent DSO performance, with occasional fluctuations. It would be important for Garmin to continue monitoring its DSO and take measures to ensure efficient accounts receivable management to optimize cash flow and working capital.