Texas Instruments Incorporated (TXN)

Days of sales outstanding (DSO)

		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	Jun 30, 2019	Mar 31, 2019
Receivables turnover		9.80	9.17	9.62	10.39	10.57	9.90	8.95	10.56	10.78	10.64	10.54	9.74	10.23	9.87	11.64	10.73	13.39	10.99	10.74	10.83
DSO	days	37.25	39.82	37.93	35.13	34.54	36.88	40.80	34.56	33.85	34.30	34.64	37.49	35.69	36.99	31.36	34.02	27.26	33.21	33.99	33.72

December 31, 2023 calculation

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

Days of Sales Outstanding (DSO) is a financial ratio that measures how long it takes for a company to collect payments from its customers for sales made. A lower DSO value indicates that a company is collecting payments more quickly, which is generally favorable.

Looking at the historical DSO data for Texas Instruments Inc., we can see some fluctuations in the ratio over the past eight quarters. In Q4 2023, the DSO was 37.23 days, showing a slight improvement from Q3 2023 when it was 39.82 days. This indicates that the company was able to collect payments from its customers more efficiently in the most recent quarter.

Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), we observe an increase in DSO from 34.54 days to 37.23 days. This suggests that Texas Instruments Inc. took slightly longer to collect payments in Q4 2023 compared to the previous year.

Overall, it is important for Texas Instruments Inc. to monitor its DSO and strive to maintain a reasonable level to ensure efficient cash flow management and liquidity. Analyzing trends and deviations in DSO can provide insights into the company's accounts receivable processes and help in identifying areas for improvement.