Synaptics Incorporated (SYNA)

Days of sales outstanding (DSO)

		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	Sep 30, 2019
Receivables turnover		6.28	6.03	7.60	9.74	7.93	7.15	6.70	6.27	5.29	5.19	4.51	5.01	5.75	5.93	5.57	6.23	7.33	5.58	5.42	5.92
DSO	days	58.12	60.54	48.02	37.49	46.04	51.07	54.44	58.23	68.95	70.31	80.89	72.92	63.53	61.53	65.53	58.58	49.82	65.39	67.29	61.69

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.28
= 58.12

Days Sales Outstanding (DSO) is a financial metric that measures the average number of days a company takes to collect revenue after a sale has been made. A lower DSO indicates that the company is able to collect payments from customers more quickly, which can be a sign of strong cash flow management and efficient accounts receivable processes.

Analyzing the DSO trend of Synaptics Incorporated over the past few quarters, we can observe some fluctuations. In the most recent quarter, ending June 30, 2024, the DSO was 58.12 days, showing a slight decrease from the previous quarter's 60.54 days. This indicates that the company improved its collection efficiency during this period.

Looking back further, we see that the DSO has varied over the quarters, with some quarters showing higher DSO figures such as 80.89 days in December 2021 and 70.31 days in March 2022. These elevated DSO figures may suggest delays in customer payments and could potentially lead to cash flow challenges if not managed effectively.

Overall, it appears that Synaptics is making efforts to manage its accounts receivable process more efficiently, as evidenced by the recent decrease in DSO. However, the company may need to continue monitoring and improving its collections practices to ensure a healthy cash flow position and sustainable business operations in the long term.