Semtech Corporation (SMTC)

Days of sales outstanding (DSO)

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Jan 26, 2020
Receivables turnover		5.09	4.38	10.29	8.37	8.69
DSO	days	71.67	83.32	35.47	43.62	41.99

January 28, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.09
= 71.67

To analyze Semtech Corporation's Days Sales Outstanding (DSO) over the past five years, we observe a trend of fluctuation in the company's collection period for accounts receivable. In the most recent fiscal year ending on January 28, 2024, Semtech had a DSO of 71.67 days, indicating that, on average, it took the company approximately 71.67 days to collect revenue from its sales.

Comparing this figure to the prior year's DSO of 83.32 days, we note a decrease in the collection period, suggesting improved efficiency in collecting receivables. However, in the fiscal year ending on January 30, 2022, Semtech had a notably lower DSO of 35.47 days, reflecting a significantly shorter time frame for collecting payments from customers.

In the preceding fiscal years, Semtech's DSO was 43.62 days in 2021 and 41.99 days in 2020, indicating a relatively stable collection period during that period. Overall, the fluctuation in DSO over the years may be attributed to factors such as changes in sales volume, credit policies, customer payment behavior, and economic conditions impacting receivables management at Semtech Corporation.