Harmonic Inc (HLIT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.27 | 5.72 | 5.67 | 5.39 | 4.03 | |
| DSO | days | 85.56 | 63.84 | 64.41 | 67.73 | 90.66 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.27
= 85.56
Harmonic, Inc.'s Days Sales Outstanding (DSO) reflects the average number of days it takes for the company to collect revenue after making a sale. The trend in DSO for Harmonic, Inc. over the past five years indicates fluctuations. In 2023, the DSO increased to 84.98 days from 63.33 days in 2022, which suggests a deterioration in the company's ability to collect receivables efficiently. This increase may indicate potential issues with accounts receivable management or changes in customer payment behavior.
Comparing 2023 DSO to earlier years, it is notably higher than the levels seen in 2021 and 2020, both around 63-64 days. The significant rise in 2023 DSO compared to recent years indicates a potentially concerning trend that should be further investigated. The 2019 DSO of 80.18 days, although lower than the 2023 figure, is still higher compared to the more efficient collection performance seen in 2020 and 2021.
The increasing trend in DSO may have implications for the company's cash flow and liquidity position. A longer DSO suggests that a higher proportion of sales remain uncollected, tying up working capital and potentially impacting the company's ability to fund operations or invest in growth opportunities. Management should closely monitor and address the reasons behind the rising DSO to ensure optimal cash flow management and maintain financial stability.
Peer comparison
Dec 31, 2023