Kulicke and Soffa Industries Inc (KLIC)

Days of sales outstanding (DSO)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Receivables turnover		3.64	4.68	4.86	3.60	3.14
DSO	days	100.22	77.97	75.09	101.30	116.35

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.64
= 100.22

The Days of Sales Outstanding (DSO) for Kulicke and Soffa Industries Inc have shown a fluctuating trend over the past five years. In the latest period ending on September 30, 2024, the DSO stands at 100.22 days, indicating an increase from the previous year. This implies that on average, the company is taking approximately 100 days to collect its accounts receivable.

Compared to the prior years, the DSO was lower in the years 2023 and 2022 at 77.97 days and 75.09 days respectively, suggesting more efficient collection of receivables during those periods. However, the DSO increased significantly in 2021 to 101.30 days before improving slightly to 116.35 days in 2020.

The upward trend in DSO may suggest potential issues with the company's accounts receivable management and collections process. It could indicate delays in collecting payments from customers, which may lead to cash flow challenges if not addressed efficiently.

Further analysis and comparison with industry benchmarks or competitors' DSO ratios would provide more insights into the effectiveness of Kulicke and Soffa's credit and collection policies. It is essential for the company to monitor and manage its DSO effectively to ensure timely cash inflows and maintain a healthy working capital position.