Skyworks Solutions Inc (SWKS)

Days of sales outstanding (DSO)

		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	Dec 31, 2019
Receivables turnover		8.21	7.20	7.37	7.04	5.52	6.76	7.41	6.88	4.97	6.84	6.59	6.58	6.74	8.33	8.77	5.75	9.36	9.32	8.86	7.73
DSO	days	44.45	50.71	49.50	51.82	66.10	54.00	49.28	53.06	73.43	53.34	55.38	55.44	54.17	43.79	41.63	63.43	38.99	39.15	41.20	47.19

September 30, 2024 calculation

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

Days Sales Outstanding (DSO) is a key metric that measures the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO indicates that the company is more efficient in collecting its accounts receivable, while a higher DSO can suggest potential issues with collections or credit policies.

Analyzing the DSO trend for Skyworks Solutions Inc over the past several quarters, we observe fluctuations in the metric. In the most recent quarter ending September 30, 2024, the DSO was reported at 44.45 days, showing an improvement compared to the previous quarter. This indicates that the company was able to collect its accounts receivable more efficiently during this period.

Looking further back, we can see that DSO has varied over time, with peaks and troughs reflecting changes in the company's sales and receivables management. For example, in the quarter ending September 30, 2022, the DSO spiked to 73.43 days, signaling potential challenges in collecting payments. However, the company managed to reduce this metric in subsequent quarters, demonstrating an improvement in its accounts receivable process.

Overall, it is important for Skyworks Solutions Inc to monitor its DSO closely to ensure efficient cash flow management and timely collection of receivables. By analyzing trends in DSO over time and comparing it to industry benchmarks, the company can assess the effectiveness of its credit and collection policies and make informed decisions to optimize working capital and liquidity.