Ichor Holdings Ltd (ICHR)

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		11.87	8.62	10.98	9.77	9.31	6.86	—	—	7.62	8.61	8.50	8.75	8.97	8.16	7.40	7.91	7.19	7.29	14.02	12.86
DSO	days	30.76	42.36	33.25	37.36	39.21	53.25	—	—	47.89	42.39	42.96	41.73	40.70	44.74	49.35	46.14	50.75	50.09	26.03	28.38

December 31, 2023 calculation

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

Days Sales Outstanding (DSO) is a financial ratio that reflects how efficiently a company is able to collect outstanding accounts receivable. A lower DSO value indicates that the company is collecting its receivables more quickly, which is generally favorable as it implies a stronger cash flow position.

Looking at the historical trend of Ichor Holdings Ltd's DSO, we observe some fluctuations over time. In the recent period, there has been a decreasing trend in DSO from 42.36 days in September 2023 to 30.76 days in December 2023. This reduction suggests an improvement in the company's ability to collect payments from customers more promptly.

However, it's worth noting that there were fluctuations in DSO over the past quarters, with some periods showing higher values such as 53.25 days in September 2022 and 50.75 days in December 2019. These elevated DSO values could indicate potential challenges in collecting receivables efficiently during those periods.

Overall, the decreasing trend in DSO in the most recent period is a positive sign, but it is important for Ichor Holdings Ltd to maintain focus on efficiently managing its accounts receivable to ensure timely collection and healthy cash flow management going forward.