Power Integrations Inc (POWI)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		15.42	24.24	25.22	35.01	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
DSO	days	23.67	15.06	14.47	10.42	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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.42
= 23.67

Days Sales Outstanding (DSO) is a key financial metric that measures the average number of days a company takes to collect revenue after a sale is made. In the case of Power Integrations Inc, the DSO has fluctuated over the past few quarters.

As of December 31, 2024, the DSO stands at 23.67 days. This indicates that on average, it takes Power Integrations Inc approximately 23.67 days to collect revenue from its sales. Compared to previous periods, this DSO figure is relatively high, suggesting a potential slowdown in the collection of receivables.

It is worth noting that there have been fluctuations in DSO over the quarters, with some periods showing lower DSO figures such as 8.39 days on September 30, 2022, and higher figures like 27.92 days on March 31, 2021. These fluctuations may be influenced by factors such as changes in the company's credit policies, customer payment behavior, and sales volume.

Overall, a high DSO can indicate inefficiencies in the company's accounts receivable management and may require further investigation to understand the underlying reasons for delayed collection of sales proceeds. Monitoring DSO trends over time can provide insights into the effectiveness of Power Integrations Inc's credit and collection processes.