Power Integrations Inc (POWI)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		30.29	31.25	16.99	13.60	17.33
DSO	days	12.05	11.68	21.48	26.84	21.06

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 30.29
= 12.05

The days of sales outstanding (DSO) for Power Integrations Inc. have shown a fluctuating trend over the past five years. In 2023, the DSO decreased to 12.05 days from 11.68 days in 2022, indicating that the company was able to collect its accounts receivable more efficiently in the most recent year. This improvement in DSO suggests that Power Integrations managed its credit collection process well and converted sales into cash more quickly.

Comparing to the previous years, the DSO was significantly higher in 2021 at 21.48 days, and even higher in 2020 at 26.84 days, which indicates that the company took longer to collect payments from its customers during those periods. However, looking back to 2019, the DSO was lower at 22.17 days, suggesting that the company was more efficient in collecting receivables in 2019 compared to the following years.

Overall, a decreasing trend in DSO over the years is generally positive as it indicates that Power Integrations has been improving its accounts receivable management and collection processes, ultimately leading to better cash flow management and liquidity.