The Aceva Working Capital Management suite of applications delivers the tools and work flow improvements necessary to reduce Days Sales Outstanding
(DSO), eliminate financial process errors, identify and resolve root causes, and unlock working capital.
Net days sales outstanding
declined to 53 days for the quarter, representing our seventh consecutive quarter in which net days sales outstanding
in accounts receivable is 56 days or less.
6/30/98 9/30/98 12/31/98 3/31/99 Days Sales Outstanding
Using this kind of analysis, EKCC recently changed its invoices to make it easier for customers to pay and thereby improve our statistics on the number of days sales outstanding
Days sales outstanding
was 150 days at December 31, 1997 and 263 days at December 31, 1996.
Mohawk also will work to significantly increase the number of customers who pay electronically, minimizing days sales outstanding
(DSOs) and further enabling customers to take advantage of early payment discounts.
However in the near term we are concerned that: pricing pressure and production issues may limit the potential for gross margin expansion, economic issues in Asia may continue to have some impact on the company's sales in that region, and a gradual shift in the company's geographic revenue mix away from Letter of Credit payment markets may result in higher Days Sales Outstanding
The Best Financially Managed Emerging Fabless Company Award (less than $500 million in sales) is designed to evaluate the financial health of public fabless semiconductor companies based on a number of financial indices such as return on investment, return on equity, inventory turns, revenue, net income, days sales outstanding
, cash per share, cash burn, gross profit margin, operating margin and current ratio.
Days sales outstanding
increased from 63 to 65 days.
Quarterly days sales outstanding
declined to 99 days from 104 days in the previous quarter.
This increased efficiency directly impacts financial measurements through improved productivity and reduced Days Sales Outstanding
The greatest improvement this year was in Days Sales Outstanding
, in part because accounts receivable is the area of working capital where CFOs have the most influence.