Sanmina Corporation (SANM)

To analyze Sanmina Corp's days of sales outstanding (DSO), we will examine the trend over the past five years. DSO measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates that the company is collecting payments from customers more quickly, which is favorable for cash flow and working capital management.

Looking at the data, we observe a fluctuating trend in DSO over the past five years. In September 2023, Sanmina Corp reported a DSO of 50.28 days, which represents a decrease from the previous year's 52.68 days. This suggests an improvement in the company's ability to collect receivables from customers in a more efficient manner.

In contrast, the DSO stood at 64.42 days in October 2021, indicating a relatively longer collection period compared to the more recent fiscal year. This could raise concerns about the company's credit and collection policies during that period.

When comparing the DSO for September 2023 to that of September 2019, which was 50.02 days, we can see that there has been a marginal increase over the past five years. This indicates that the company's collection process may have experienced some challenges during this time frame.

Overall, the analysis suggests that although there has been some fluctuation in Sanmina Corp's DSO over the past five years, the recent decrease in DSO from the prior year is a positive sign for the company's efficiency in collecting receivables. However, it is essential for the company to continue monitoring and managing its collection processes to ensure optimal cash flow and working capital management.

Peer comparison

Sep 30, 2023