Ichor Holdings Ltd (ICHR)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		11.87	9.31	7.62	8.97	7.19
DSO	days	30.76	39.21	47.89	40.70	50.75

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.87
= 30.76

Based on the data provided, Ichor Holdings Ltd's Days Sales Outstanding (DSO) has fluctuated over the past five years. DSO measures the average number of days a company takes to collect payment after a sale has been made. A lower DSO indicates that the company is collecting payments more quickly, which is generally considered favorable.

In 2023, Ichor Holdings Ltd's DSO decreased to 30.76 days from 39.21 days in 2022, reflecting an improvement in the company's ability to collect payments efficiently. This could be a positive sign of effective credit management or operational improvements.

Comparing this figure to previous years, the trend shows a general decrease in DSO from 47.89 days in 2021 to 30.76 days in 2023. This downward trend indicates that Ichor Holdings Ltd has been successful in accelerating its cash collection process over the years, possibly through tighter credit policies, enhanced collection efforts, or improved customer relationships.

Overall, the decreasing trend in DSO for Ichor Holdings Ltd suggests that the company has been effectively managing its accounts receivable and enhancing its liquidity position by converting sales into cash more quickly. This may reflect positively on the company's financial health and operational efficiency.