Silicon Laboratories Inc (SLAB)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		10.73	26.70	14.34	7.33	5.37
DSO	days	34.03	13.67	25.46	49.78	67.99

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.73
= 34.03

Silicon Laboratories Inc has experienced a notable improvement in its Days of Sales Outstanding (DSO) over the years. The DSO decreased from 67.99 days as of December 31, 2020, to 49.78 days by December 31, 2021, showcasing better efficiency in collecting receivables. Subsequently, there was a significant drop to 25.46 days by December 31, 2022, indicating a further enhancement in managing accounts receivable.

However, there was a noticeable decrease in efficiency as the DSO plummeted to 13.67 days by December 31, 2023, suggesting a potential risk of overstated revenue due to accelerated collections. The DSO then rose to 34.03 days as of December 31, 2024, indicating a slowdown in receivables collection compared to the previous year.

Overall, although there have been fluctuations in Silicon Laboratories Inc's DSO over the years, the company exhibited better management of accounts receivable in the earlier years, which is an important factor in maintaining healthy cash flows and liquidity. It will be important for the company to closely monitor and manage its DSO to ensure the efficiency and effectiveness of its receivables collection processes.