Rambus Inc (RMBS)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		3.45	2.51	1.83	1.48	1.00
DSO	days	105.91	145.32	199.76	247.04	366.29

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.45
= 105.91

The days of sales outstanding (DSO) for Rambus Inc. have exhibited a declining trend over the past five years. In 2019, the DSO was at its highest level of 372.13 days, indicating that it took the company on average 372.13 days to collect its accounts receivable. Subsequently, there has been a consistent improvement in the collection efficiency, with DSO decreasing to 247.04 days in 2020, 199.76 days in 2021, 145.32 days in 2022, and further down to 105.91 days in 2023.

This decrease in DSO suggests that Rambus has been able to collect its accounts receivable more quickly in recent years, which can be a positive sign of effective credit management and improved liquidity. A lower DSO indicates that the company is collecting payments from customers faster, which can lead to better cash flow and working capital management. It may also indicate a stronger customer base or improved invoicing and collection processes within the organization. Overall, the trend in DSO for Rambus Inc. reflects an enhancement in the efficiency of their accounts receivable management over the specified period.