Ultra Clean Holdings Inc (UCTT)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.59	9.36	8.40	9.61	9.46
DSO	days	38.05	39.00	43.44	37.97	38.58

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.59
= 38.05

The Days Sales Outstanding (DSO) is a measure of how long, on average, it takes for a company to collect revenue after making a sale. A lower DSO indicates quicker collection of accounts receivable and better liquidity.

Ultra Clean Holdings Inc's DSO has fluctuated over the past five years, ranging from 37.97 days to 43.44 days. In 2023, the DSO decreased to 38.05 days compared to the previous year's 39.00 days. This suggests that the company improved its collection efficiency, potentially by managing its accounts receivable more effectively.

It is important for Ultra Clean Holdings Inc to monitor its DSO closely to ensure timely collection of revenues and maintain healthy cash flow. High DSO may indicate issues with credit policy, customer payment behavior, or potential liquidity problems. By continuing to focus on reducing DSO and improving accounts receivable management, the company can enhance its financial performance and efficiency in the long run.