Silicon Laboratories Inc (SLAB)

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		10.73	10.33	13.16	19.68	26.70	9.33	10.37	—	14.34	—	—	—	7.33	—	—	—	—	—	—	—
DSO	days	34.03	35.33	27.74	18.55	13.67	39.13	35.20	—	25.46	—	—	—	49.78	—	—	—	—	—	—	—

December 31, 2024 calculation

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

Days Sales Outstanding (DSO) measures the average number of days it takes for a company like Silicon Laboratories Inc to collect revenue after a sale is made. A lower DSO indicates that the company's sales are being converted into cash more quickly, which is generally seen as a positive sign.

Looking at the data provided for Silicon Laboratories Inc, the DSO for the company has shown some variability over the past few quarters. As of December 31, 2021, the company had a DSO of 49.78 days, which indicates that it took nearly 50 days on average to collect revenue from sales. This was a relatively high number, suggesting a slower collection process.

However, there has been a notable improvement in the company's DSO in the subsequent quarters. By December 31, 2024, the DSO had decreased to 34.03 days, indicating that Silicon Laboratories Inc was able to collect revenue more quickly compared to the earlier periods.

It is important for investors and analysts to monitor the trend in DSO over time, as a consistent decrease in DSO can imply a more efficient accounts receivable management process. This can lead to better cash flow and working capital management for the company.