Photronics Inc (PLAB)

Days of sales outstanding (DSO)

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Receivables turnover		3.73	4.03	4.24	3.40	4.03
DSO	days	97.75	90.56	86.11	107.48	90.49

October 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.73
= 97.75

The days of sales outstanding (DSO) ratio measures how long it takes for a company to collect its accounts receivable. A higher DSO indicates a longer time for the company to receive payment from its customers, which may be a sign of potential liquidity issues or difficulties in collecting payments.

Analyzing the DSO trend for Photronics Inc over the past five years, we observe fluctuations in the value. In 2024, the DSO increased to 97.75 days from 90.56 days in 2023. This suggests that the company took longer to collect payments from its customers in 2024 compared to the previous year, indicating a potential inefficiency in managing accounts receivable.

Furthermore, comparing the DSO to earlier years, we can see that the DSO was lower in 2022 at 86.11 days and in 2020 at 90.49 days, indicating more efficient collections in those years. However, the DSO spiked in 2021 to 107.48 days, signaling potential challenges in timely collection efforts.

Overall, the varying DSO values over the past five years highlight the importance for Photronics Inc to closely monitor and improve its accounts receivable collection process to ensure efficient cash flow management and optimize its working capital position.