MACOM Technology Solutions Holdings Inc (MTSI)

Days of sales outstanding (DSO)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Receivables turnover		6.90	7.11	6.65	7.18	11.55
DSO	days	52.88	51.37	54.90	50.86	31.60

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.90
= 52.88

MACOM Technology Solutions Holdings Inc's Days Sales Outstanding (DSO) has shown variability over the past five years. In fiscal year 2024, the DSO was recorded at 52.88 days, slightly higher than the prior year's 51.37 days. This indicates that on average, it took the company approximately 52.88 days to collect its accounts receivable during the period.

Comparing to fiscal year 2022 and 2023, where the DSO was 54.90 days and 50.86 days, respectively, the 2024 figure falls within that range. However, it is worth noting that there was a significant decrease in DSO from fiscal year 2020 to fiscal year 2021, where it dropped from 31.60 days to 50.86 days.

The trend in DSO can be an indicator of the company's efficiency in collecting receivables. A lower DSO suggests that the company is collecting payments more quickly, which is generally favorable for cash flow management. On the other hand, a higher DSO may indicate potential issues with credit policies, collection processes, or customer payment delays.

Overall, while the DSO for MACOM Technology Solutions Holdings Inc has fluctuated over the years, it is essential for the company to monitor and manage this metric to ensure efficient working capital management and cash flow optimization.