Qualcomm Incorporated (QCOM)

Days of sales outstanding (DSO)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Receivables turnover		16.35	18.28	10.50	15.09	8.72
DSO	days	22.32	19.97	34.75	24.19	41.85

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 16.35
= 22.32

Days Sales Outstanding (DSO) is a measure of the average number of days it takes a company to collect revenue after a sale is made. A lower DSO is generally considered favorable as it indicates quicker conversion of sales into cash, while a higher DSO may suggest potential issues with collections or credit policies.

Analyzing Qualcomm Incorporated's DSO over the past five years, we observe fluctuations in the trend. In 2020, the DSO was relatively high at 41.85 days, indicating a slower collection of revenue. However, there has been a steady improvement in DSO in the following years, with a significant drop to 19.97 days in 2023, reflecting more efficient revenue collection processes.

In 2024, Qualcomm's DSO increased slightly to 22.32 days, which may suggest a minor delay in collecting revenue compared to the previous year. Despite this increase, the current DSO level remains relatively low compared to historical data, indicating the company's effective management of accounts receivable and timely collection of sales proceeds.

Overall, Qualcomm's decreasing trend in DSO over the past few years is a positive sign of efficient working capital management and effective credit policies, contributing to a healthier cash flow position. Monitoring DSO going forward will be crucial to ensure continued effectiveness in revenue collection processes.