Wolfspeed Inc (WOLF)

Days of sales outstanding (DSO)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Receivables turnover		4.06	5.08	2.41	4.25	7.30
DSO	days	89.87	71.79	151.34	85.83	49.99

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.06
= 89.87

Wolfspeed Inc's Days of Sales Outstanding (DSO) measures how long, on average, it takes the company to collect payments from its customers after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which is generally seen as positive, as it suggests efficient cash flow management.

Looking at the historical trend of Wolfspeed Inc's DSO, we see fluctuations over the past five years. In 2020, the DSO was relatively low at 49.99 days, indicating a quick collection of payments. However, this increased significantly in 2022 to 151.34 days, which may have been a cause for concern as it suggests a longer collection period and potentially cash flow challenges.

In the most recent year, as of June 30, 2024, the DSO decreased to 89.87 days, an improvement from the previous year. While still higher than the 2020 level, the decrease may indicate that Wolfspeed Inc has made efforts to shorten its collection period and improve cash flow efficiencies. It is essential for the company to monitor and manage its DSO to ensure timely collection of receivables and maintain a healthy cash flow position.

Overall, Wolfspeed Inc's DSO trend reflects fluctuations in its receivables management over the years, with recent improvements suggesting a positive direction in terms of collecting payments more efficiently.