Rambus Inc (RMBS)

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		3.76	4.39	4.24	3.71	3.45	3.57	2.95	2.94	2.51	2.35	1.87	1.95	1.83	1.61	1.50	1.44	1.48	1.41	1.30	1.13
DSO	days	96.97	83.17	86.14	98.40	105.91	102.36	123.55	124.26	145.32	155.38	195.19	187.10	199.76	226.21	244.08	252.62	247.04	258.56	280.12	322.41

December 31, 2024 calculation

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

Days Sales Outstanding (DSO) is a key financial metric that indicates the average number of days it takes for a company to collect revenue after making a sale. In the case of Rambus Inc, the trend of DSO from March 31, 2020, to December 31, 2024, shows a gradual decline from 322.41 days to 83.17 days.

Initially, Rambus had a high DSO of 322.41 days in March 2020, indicating a slow collection of receivables. However, the company managed to improve its collection efficiency over time, as reflected in the decreasing trend of DSO figures in subsequent periods. By December 31, 2024, the DSO had decreased significantly to 96.97 days, showcasing enhanced liquidity and effective management of accounts receivable.

The consistent reduction in DSO implies that Rambus has been successful in setting up more efficient credit policies, enhancing its collection processes, and maintaining better relationships with its customers. A lower DSO is generally favorable as it signifies quicker cash conversion cycles and improved working capital management, which can lead to better financial health and liquidity for the company.