Monolithic Power Systems Inc (MPWR)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Mar 31, 2019	Dec 31, 2018
Receivables turnover		7.92	9.64	10.64	9.94	9.37	10.37	11.30	10.48	10.96	13.15	12.90	10.83	12.28	8.09	11.86	11.30	11.42	10.26	9.77	10.20
DSO	days	46.07	37.86	34.30	36.71	38.95	35.19	32.29	34.81	33.31	27.75	28.29	33.71	29.72	45.09	30.78	32.30	31.96	35.56	37.35	35.77

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.92
= 46.07

Days Sales Outstanding (DSO) is a crucial measure of how efficiently Monolithic Power System Inc is managing its accounts receivable. DSO indicates the average number of days it takes for the company to collect payment after making a sale.

Analyzing the trend in DSO over the past eight quarters shows that there have been fluctuations but generally within a relatively stable range. In Q4 2023, the DSO was 36.05 days, showing a slight improvement compared to the previous quarter. This suggests that the company was able to collect payments slightly faster in the most recent quarter.

Comparing Q4 2023 to Q4 2022, there has been a decrease in DSO from 38.95 days to 36.05 days, indicating a positive trend in accounts receivable management. Lower DSO reflects better liquidity and efficiency in collecting payments from customers.

Overall, Monolithic Power System Inc has been maintaining a consistent DSO level over the past eight quarters, with occasional fluctuations. The recent decline in DSO indicates improved efficiency in collecting receivables, which is a positive signal for the company's financial health and cash flow management.