Impinj Inc (PI)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.44 | 5.51 | 5.10 | 5.35 | 5.42 | |
| DSO | days | 56.63 | 66.19 | 71.60 | 68.23 | 67.40 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.44
= 56.63
The Days Sales Outstanding (DSO) is a financial ratio that indicates the average number of days it takes for a company to collect payment after making a sale. Analyzing Impinj Inc's DSO over the years reveals interesting trends.
In 2020, the DSO stood at 67.40 days, showing that on average, Impinj took around 67 days to collect its receivables. The slight increase in the DSO to 68.23 days in 2021 suggests a marginal delay in the collection of payments compared to the previous year.
By the end of 2022, the DSO further extended to 71.60 days, indicating a potential challenge in the company's collections process or the credit terms offered to customers. However, in 2023, there was a notable improvement as the DSO decreased to 66.19 days, signaling a more efficient collection of outstanding payments.
The most significant improvement was observed in 2024, with the DSO dropping to 56.63 days. This sharp decline suggests a commendable performance in managing accounts receivable, potentially through better credit policies or enhanced collection practices.
Overall, the fluctuations in Impinj Inc's DSO highlight the company's effectiveness in managing its accounts receivable and collecting payments efficiently. It is essential for Impinj to monitor DSO closely to ensure optimal cash flow and liquidity management.
Peer comparison
Dec 31, 2024