Rambus Inc (RMBS)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		3.76	3.45	2.51	1.83	1.48
DSO	days	96.97	105.91	145.32	199.76	247.04

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.76
= 96.97

Based on the available data, Rambus Inc's Days Sales Outstanding (DSO) have shown a decreasing trend over the past five years.

As of December 31, 2020, the DSO stood at 247.04 days, indicating that, on average, it took the company approximately 247 days to collect its accounts receivable. However, by December 31, 2024, the DSO had decreased significantly to 96.97 days, implying a notable improvement in the company's receivables collection efficiency.

This reduction in DSO suggests that Rambus Inc has been managing its accounts receivable more effectively over the years, possibly by implementing better credit policies, enhancing collection procedures, or maintaining stronger customer relationships. A lower DSO typically signifies that the company is converting its credit sales into cash more quickly, which is a positive indicator of liquidity and cash flow management.

Overall, the declining trend in Rambus Inc's Days Sales Outstanding reflects improved efficiency in collecting outstanding receivables, which could have positive implications for the company's working capital management and financial performance.