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.


Peer comparison

Dec 31, 2023