MaxLinear Inc (MXL)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		4.22	4.06	6.55	7.45	7.10
DSO	days	86.52	89.83	55.71	48.97	51.43

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.22
= 86.52

The Days Sales Outstanding (DSO) ratio for MaxLinear Inc has exhibited some fluctuations over the past five years. The DSO was 51.43 days as of December 31, 2020, indicating that, on average, it took the company 51.43 days to collect its accounts receivable. In the following year, by December 31, 2021, the DSO improved slightly to 48.97 days, suggesting more efficiency in the collection of receivables.

However, there was a notable increase in DSO to 55.71 days by December 31, 2022, which may indicate a slower collection process or changes in the company's credit policy impacting receivables turnover. This trend continued as by December 31, 2023, the DSO surged significantly to 89.83 days, raising concerns about potential liquidity issues or challenges in managing accounts receivable.

By December 31, 2024, the DSO remained high at 86.52 days, reflecting a continued delay in collecting receivables and possibly indicating a need for the company to review its credit policies or enhance its collection efforts. Overall, the trend in MaxLinear Inc's DSO reveals fluctuations in the efficiency of accounts receivable management over the five-year period, highlighting the importance of closely monitoring and addressing any challenges in collecting outstanding payments.