InterDigital Inc (IDCC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.77 | 3.47 | 4.61 | 4.73 | 7.39 | |
| DSO | days | 96.82 | 105.33 | 79.12 | 77.10 | 49.39 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.77
= 96.82
Interpreting the days of sales outstanding (DSO) trend for Interdigital Inc over the past five years reveals fluctuations in the efficiency of the company in collecting its accounts receivable. In 2019, the DSO was at its lowest at 32.36 days, indicating a swift collection of receivables. This increased significantly in 2020 to 87.03 days before slightly improving in 2021 to 75.71 days. In 2022, the DSO further increased to 106.00 days, signaling a potential delay in collecting receivables. However, in 2023, there was a decrease to 91.07 days but still higher compared to the previous years.
The rising trend in DSO from 2020 to 2022 may raise concerns about the company's collection policies and potential credit risks. Investors and creditors may need to monitor this trend closely to ensure the company maintains a healthy balance between sales growth and efficient collection of receivables.
Peer comparison
Dec 31, 2023