Industry Profiles
Semiconductor Industry Credit Benchmarks Fall as Profits Rise
April 2, 2008
Semiconductor companies moved toward greater efficiency as evidenced by the fall in two key credit and effeciency benchmarks -- days' sales outstanding (DSO) and bad debt allowance (BDA). Not suprisingly, profits rose, according to the latest data from the Credit Standards Index (CSI).
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55% of the 83 companies in this
industry group are based in California.
The average annual DSO benchmark for the semiconductor industry fell to 50.52 days from the 2005 figure of 52.81, a drop of 2.29 days, according to the latest data from the Credit Standards Index (CSI). Equally impressive, bad debt allowance fell to 3.0% from its 2005 figure of 3.3%, a drop of .3%. Median DSO came in at 48.91, almost three full days below the 2005 median of 51.74. Median BDA is 1.6%, 0.5% lower than the 2005 mark of 2.1%.
