Semtech Corporation (SMTC)
Days of sales outstanding (DSO)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | 5.15 | — | 5.50 | — | 4.89 | — | — | 4.15 | — | 9.80 | — | — | — | — | 10.53 | |
| DSO | days | — | — | — | — | — | 70.89 | — | 66.35 | — | 74.67 | — | — | 87.98 | — | 37.25 | — | — | — | — | 34.68 |
January 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Days Sales Outstanding (DSO) is a key metric that indicates how efficiently a company is managing its accounts receivable. DSO measures the average number of days it takes for a company to collect payment after making a sale.
Based on the data provided for Semtech Corporation, the DSO for the financial periods presented varies. In January 2022, the DSO was 34.68 days, indicating that on average, it took the company approximately 34.68 days to collect payment from its customers.
The subsequent periods show missing data, denoted by dashes, suggesting that the DSO values for those periods were not available. However, moving ahead to October 2022, the DSO increased to 37.25 days, signifying a slight delay in the collection of receivables compared to January 2022.
The data then skips to January 2023, where the DSO spiked to 87.98 days, which is a significant increase from the previous known value. This suggests a potential issue with the company's accounts receivable management during that period.
Subsequent periods such as July 2023 and October 2023 show DSO values of 74.67 days and 66.35 days, respectively, indicating improvements in collections efficiency compared to January 2023 but still above the initial value in January 2022.
The data continues to depict fluctuations in DSO over the following periods, with January 2024 showing a DSO of 70.89 days. The absence of DSO data for subsequent periods makes it challenging to assess the ongoing trend in the company's accounts receivable management.
In general, a decreasing DSO trend is favorable as it suggests that a company is effectively managing its accounts receivable and collecting payments in a timely manner. Conversely, an increasing DSO may indicate issues with collections efficiency or potential credit risks.
Overall, the analysis of Semtech Corporation's DSO indicates fluctuations in the efficiency of its accounts receivable management over the periods provided, with some notable spikes and improvements in collection times. Additional data would be needed to discern a consistent trend and evaluate the company's overall financial health accurately.
Peer comparison
Jan 31, 2025