InterDigital Inc (IDCC)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.25 | 3.77 | 3.47 | 4.61 | 4.73 | |
| DSO | days | 85.87 | 96.82 | 105.33 | 79.12 | 77.10 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.25
= 85.87
InterDigital Inc's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payments from its customers after making a sale.
Looking at the historical trend, we can observe that the company's DSO has shown variability over the years:
- As of December 31, 2020, the DSO stood at 77.10 days, reflecting a relatively efficient collection period.
- By December 31, 2021, the DSO increased slightly to 79.12 days, indicating a slightly longer collection period compared to the previous year.
- The DSO saw a significant jump to 105.33 days by December 31, 2022, suggesting a prolonged collection period, which may raise concerns about liquidity and cash flow management.
- However, there was a decrease in DSO to 96.82 days by December 31, 2023, though still higher than previous years.
- By December 31, 2024, the DSO improved to 85.87 days, although it remained elevated compared to earlier years.
Overall, the increasing trend in DSO from 2020 to 2022 may indicate potential challenges in collecting payments promptly from customers, which could impact the company's working capital management and cash flow. The company may need to focus on improving its credit policies, invoicing processes, and collection strategies to shorten its DSO and enhance its cash conversion cycle.
Peer comparison
Dec 31, 2024