Power Integrations Inc (POWI)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		30.29	16.81	16.04	27.95	31.25	43.49	25.57	23.21	16.99	17.53	15.13	13.07	13.60	15.35	34.58	21.42	17.33	14.74	15.05	19.14
DSO	days	12.05	21.71	22.76	13.06	11.68	8.39	14.27	15.72	21.48	20.82	24.12	27.92	26.84	23.77	10.56	17.04	21.06	24.76	24.25	19.07

December 31, 2023 calculation

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

The days of sales outstanding (DSO) ratio for Power Integrations Inc. has fluctuated over the past eight quarters. In Q4 2023, the DSO was 12.05 days, showing an improvement from the previous quarter. This indicates that the company is collecting its accounts receivable more efficiently compared to Q3 2023 when the DSO was 21.71 days.

Looking back at historical data, the DSO was relatively low in Q4 2022 at 11.68 days but then increased in the following quarters before decreasing again in Q4 2023. This fluctuation suggests some variability in the company's collection efficiency.

Overall, Power Integrations Inc. should continue to monitor its DSO closely to ensure that it maintains efficient accounts receivable management. A lower DSO indicates that the company is collecting payments faster, which can improve cash flow and overall financial health. However, significant increases in DSO could indicate potential issues with accounts receivable collection that may require attention to prevent liquidity or profitability challenges.