InterDigital Inc (IDCC)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.18 | 2.99 | 2.90 | 3.44 | 3.78 | 6.64 | 6.06 | 7.44 | 3.42 | 6.50 | 7.05 | 7.71 | 4.61 | 7.76 | 7.15 | 4.89 | 4.84 | — | — | — | |
| DSO | days | 87.30 | 121.98 | 126.05 | 106.22 | 96.69 | 54.96 | 60.19 | 49.04 | 106.73 | 56.13 | 51.76 | 47.36 | 79.12 | 47.05 | 51.07 | 74.71 | 75.40 | — | — | — |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.18
= 87.30
Days Sales Outstanding (DSO) is a key metric that indicates the average number of days it takes for a company to collect payment after making a sale. In the case of InterDigital Inc, the DSO has shown fluctuations over the past few quarters.
As of December 31, 2020, the DSO stood at 75.40 days, indicating that on average, it took InterDigital around 75 days to collect revenue from its sales. The DSO improved slightly over the next few quarters, reaching a low of 47.05 days by September 30, 2021. This improvement suggests that the company was able to manage its receivables more efficiently.
However, the DSO increased significantly to 106.73 days by December 31, 2022, and further to 126.05 days by June 30, 2024. These higher DSO figures may indicate potential issues with the company's credit policies or difficulties in collecting payments from customers.
It is worth noting that a higher DSO means that a company is taking longer to collect payments, which can impact cash flow and liquidity. InterDigital should closely monitor its DSO and take actions to shorten the collection period to improve its working capital management and financial health in the future.
Peer comparison
Dec 31, 2024