Qualcomm Incorporated (QCOM)

Days of sales outstanding (DSO)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Receivables turnover		18.28	10.50	15.09	8.72	22.90
DSO	days	19.97	34.75	24.19	41.85	15.94

September 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 18.28
= 19.97

Qualcomm Incorporated's Days Sales Outstanding (DSO) indicates the average number of days it takes for the company to collect revenue after making a sale. A lower DSO value is favorable as it implies quicker cash conversion from sales.

In the fiscal year ending September 30, 2023, Qualcomm's DSO improved significantly to 19.97 days from 34.75 days in the previous year. This suggests that the company has been more efficient in collecting its receivables, potentially due to better credit management or improved payment terms.

Compared to the fiscal year ending September 30, 2021, Qualcomm also saw a reduction in its DSO from 24.19 days to 19.97 days, indicating ongoing efforts to enhance receivables collection processes.

In the years 2020 and 2019, Qualcomm had higher DSO values of 41.85 days and 15.94 days, respectively. The increase in 2020 could have been influenced by external factors or operational challenges, while the decrease in 2019 reflects improved sales collection efficiency.

Overall, the decreasing trend in DSO indicates Qualcomm's enhanced ability to manage its accounts receivable and collect revenue more promptly in recent years.