IPG Photonics Corporation (IPGP)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.25 | 5.67 | 4.88 | 3.59 | 4.74 | |
| DSO | days | 69.49 | 64.41 | 74.73 | 101.60 | 77.01 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.25
= 69.49
The Days of Sales Outstanding (DSO) for IPG Photonics Corp have shown fluctuations over the past five years. In 2023, the DSO stands at 62.10 days, which is an increase from the previous year when it was 53.96 days. While the DSO decreased in 2022, it had increased in 2021 compared to 2020. Furthermore, the DSO was highest in 2020 at 80.35 days. Overall, a lower DSO indicates faster collection of accounts receivable, which is favorable for the company's cash flow management. In contrast, a higher DSO could signify potential issues with collecting receivables promptly. It is important for IPG Photonics Corp to monitor and manage its DSO effectively to ensure efficient working capital management and healthy liquidity in the long term.
Peer comparison
Dec 31, 2023