Silicon Laboratories Inc (SLAB)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 26.70 | 14.34 | 7.33 | 5.37 | 6.26 | |
| DSO | days | 13.67 | 25.46 | 49.78 | 67.99 | 58.27 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 26.70
= 13.67
The Days Sales Outstanding (DSO) ratio measures the average number of days a company takes to collect revenue after a sale is made. Silicon Laboratories Inc's DSO has shown a decreasing trend over the past five years, indicating an improvement in the company's ability to collect its accounts receivable efficiently.
In 2023, Silicon Laboratories Inc's DSO stood at 13.67 days, representing a significant decrease from 25.46 days in 2022. This sharp reduction suggests that the company has been able to streamline its receivables collection process and convert sales into cash more rapidly.
Comparing the current DSO to earlier years, Silicon Laboratories Inc has made impressive progress in managing its receivables. The DSO was notably higher at 49.78 days in 2021, 67.99 days in 2020, and 58.27 days in 2019. This consistent decline indicates that the company has been successful in optimizing its credit policies and enhancing its collection efforts.
Overall, the decreasing trend in Silicon Laboratories Inc's DSO reflects an efficient credit management strategy, improved collection procedures, and potential increased cash flow generation. It suggests that the company has been successful in managing its accounts receivable effectively and converting sales into cash swiftly.
Peer comparison
Dec 31, 2023