Illumina Inc (ILMN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.14	6.83	6.98	6.65	6.18
DSO	days	59.48	53.43	52.26	54.88	59.03

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.14
= 59.48

To analyze the Days Sales Outstanding (DSO) trend for Illumina Inc based on the data provided:

1. The DSO for Illumina Inc has exhibited fluctuations over the past five years. In 2023, the DSO stood at 59.48 days, representing an increase from the previous year.

2. Comparing 2023 to 2022, there was a notable rise in DSO from 53.43 days to 59.48 days, indicating a potential delay in collecting sales revenue from customers.

3. In 2022, the DSO was slightly higher at 52.26 days compared to the prior year, showing a moderate increase in the collection period.

4. The DSO in 2021 was 54.88 days, slightly higher than in 2020, suggesting a longer collection period for sales.

5. In 2020, the DSO was 59.03 days, signifying a longer period taken to convert sales into cash compared to 2021.

6. Overall, there is a fluctuating trend in Illumina Inc's DSO over the past five years, with some years experiencing increases and others showing decreases, indicating varying efficiencies in the company's accounts receivable management.

By closely monitoring and managing the DSO metric, Illumina Inc can assess its credit policies, payment terms, and collection processes to optimize cash flows and improve overall financial performance.