Sandisk Corp (SNDK)

Days of sales outstanding (DSO)

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Dec 31, 2015
Receivables turnover 6.89 7.13 11.29 7.57 —
DSO days 53.00 51.22 32.33 48.24 —

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.89
= 53.00

The analysis of Sandisk Corp's days of sales outstanding (DSO) over the specified period reveals notable fluctuations and trends in the company's receivables collection efficiency. As of December 31, 2015, DSO data is not available, indicating either a lack of comparable historical data or that the measurement was not conducted at that time.

By June 30, 2022, the DSO was recorded at approximately 48.24 days. This figure suggests that, on average, it took the company just under two months to collect receivables, reflecting a relatively moderate collection period in line with industry norms for technology and storage device manufacturers.

A significant reduction is observed by June 30, 2023, with DSO decreasing to approximately 32.33 days. This decline indicates an improvement in receivables management, potentially driven by more stringent credit policies, improved collection processes, or changes in customer payment behaviors. Such a reduction enhances the company's cash flow and liquidity position, signaling operational efficiencies.

However, this trend reverses in the subsequent periods. By June 30, 2024, the DSO increases to approximately 51.22 days, surpassing the 2022 level. This escalation may suggest a slowdown in collection efficiency, potential credit risk concerns, or shifts in customer payment terms. An increase of this magnitude could impact liquidity and warrants further investigation into factors affecting receivables.

The upward trend continues slightly into June 30, 2025, with DSO rising marginally to approximately 53.00 days. Sustained or increasing DSO levels over multiple periods may indicate ongoing collection challenges or strategic changes in credit policies. It could also reflect broader industry or macroeconomic conditions influencing customer payment behaviors.

In summary, the company's DSO experienced a notable decline in 2023, indicating improved receivables management, followed by an upward trend in subsequent years, which could potentially strain liquidity if the trend persists. Continuous monitoring and analysis of underlying causes are recommended to assess the impact on the company's financial health and to inform strategic adjustments in credit and collection policies.