Illumina Inc (ILMN)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		5.95	6.14	6.83	6.98	6.65
DSO	days	61.36	59.48	53.43	52.26	54.88

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.95
= 61.36

Based on the data provided, Illumina Inc's Days Sales Outstanding (DSO) has shown a slight decrease from 54.88 days as of December 31, 2020, to 52.26 days as of December 31, 2021, before increasing to 53.43 days as of December 31, 2022. However, in the subsequent years, the DSO has increased significantly, reaching 59.48 days as of December 31, 2023, and further to 61.36 days as of December 31, 2024.

A lower DSO indicates that the company is collecting its accounts receivable more quickly, which can improve its cash flow and liquidity position. Conversely, a higher DSO suggests that the company may be facing challenges in collecting payments from customers in a timely manner, potentially affecting its cash flow and overall financial health.

It would be beneficial for Illumina Inc to closely monitor and manage its DSO to ensure efficient credit management and timely collection of receivables, thereby optimizing its working capital and financial performance.