Texas Instruments Incorporated (TXN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.80	10.57	10.78	10.23	13.39
DSO	days	37.25	34.54	33.85	35.69	27.26

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.80
= 37.25

Over the past five years, Texas Instruments Inc. has exhibited fluctuations in its Days of Sales Outstanding (DSO) metric, which measures the average number of days it takes for the company to collect revenue after making a sale.

In 2019, the DSO was 27.26 days, indicating that the company was efficient in collecting payments from customers. However, by 2020, the DSO increased to 35.69 days, suggesting a slower collection process, possibly due to changes in customer payment behavior or company credit policies.

Subsequently, there was a slight improvement in 2021 with a DSO of 33.85 days, although it remained relatively elevated compared to the 2019 level. In 2022, the DSO decreased further to 34.54 days, indicating some progress in streamlining the collection process.

Notably, in 2023, the DSO dropped to 37.23 days, which represents a reversal of the improving trend seen in the previous year. This increase may raise concerns about the company's ability to efficiently convert sales into cash.

Overall, while there have been fluctuations in Texas Instruments Inc.'s DSO over the past five years, the recent increase in 2023 highlights the importance of closely monitoring receivables and cash collection processes to ensure optimal working capital management and financial health.