Skyworks Solutions Inc (SWKS)

Days of sales outstanding (DSO)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Receivables turnover		8.21	5.52	4.97	6.74	9.36
DSO	days	44.45	66.10	73.43	54.17	38.99

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.21
= 44.45

The Days Sales Outstanding (DSO) ratio measures the average number of days a company takes to collect revenue after making a sale. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally considered favorable.

Analyzing Skyworks Solutions Inc's DSO over the past five years, we observe fluctuations in the collection period. In 2020, the DSO was relatively low at 38.99 days, showing efficient collection of receivables. However, in the subsequent years, the DSO increased significantly, peaking at 73.43 days in 2022, indicating a prolonged collection period. This suggests potential challenges in collecting revenues promptly during those periods.

Notably, in 2023 and 2024, the DSO decreased to 66.10 days and 44.45 days, respectively. While the reduction is positive, the DSO still remains higher than the 2020 level, indicating that Skyworks Solutions Inc may still have room for improvement in optimizing its accounts receivable collection efficiency.

Overall, Skyworks Solutions Inc's DSO trend reflects variations in its ability to collect revenues efficiently over the years, highlighting the importance of monitoring and managing the accounts receivable process effectively to maintain healthy cash flow and working capital management.