Veeco Instruments Inc (VECO)
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 | 6.35 | 5.19 | 4.83 | 5.26 | 5.11 | 4.37 | 4.72 | 5.04 | 5.03 | 5.39 | 4.55 | 4.93 | 5.41 | 5.08 | 6.02 | 4.84 | 8.82 | 5.34 | 6.89 | 6.23 | |
| DSO | days | 57.44 | 70.38 | 75.50 | 69.39 | 71.44 | 83.51 | 77.30 | 72.36 | 72.62 | 67.71 | 80.28 | 74.08 | 67.43 | 71.89 | 60.65 | 75.41 | 41.37 | 68.31 | 52.95 | 58.56 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.35
= 57.44
Veeco Instruments Inc's Days Sales Outstanding (DSO) has exhibited fluctuations over the past eight quarters. In Q4 2023, the DSO decreased to 56.42 days from the prior quarter's 69.12 days, indicating an improvement in the company's ability to collect outstanding receivables more promptly. This trend aligns with efficient accounts receivable management practices and may suggest effective credit policies or stronger customer relationships.
Comparing the current DSO to the same quarter in the previous year, there is a notable reduction from 70.17 days in Q4 2022 to 56.42 days in Q4 2023, reflecting a positive trend in the company's receivables management efficiency. The average collection period has improved, indicating a potentially healthier cash flow cycle and better working capital management.
Analyzing the trend over the past eight quarters, Veeco's DSO has been fluctuating within a range, with occasional spikes and dips. While the DSO decreased in Q4 2023, it had previously increased in Q3 and Q2 2023. It is crucial for the company to monitor these fluctuations closely to ensure that any deviations from historical trends are investigated and managed effectively.
Overall, the decreasing trend in DSO observed in Q4 2023 is a positive sign for Veeco Instruments Inc's liquidity and operational efficiency. However, continued monitoring and proactive management of accounts receivable will be essential to sustain and improve this performance metric in the future.
Peer comparison
Dec 31, 2023