Manhattan Associates Inc (MANH)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.11	4.60	5.23	5.27	6.06
DSO	days	71.44	79.43	69.80	69.24	60.23

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.11
= 71.44

To analyze Manhattan Associates, Inc.'s Days of Sales Outstanding (DSO) over the past five years, we observe a fluctuating trend in the metric.

In 2019, the DSO stood at 60.41 days, indicating the number of days it takes, on average, for the company to collect its accounts receivable. The metric increased in 2020 to 69.14 days, suggesting a delay in collecting payments from customers. However, in 2021, the DSO decreased to 69.86 days, showing a slight improvement in collections efficiency.

The DSO increased again in 2022 to 79.66 days, indicating a longer collection period compared to the previous year. This rise may raise concerns about the company's credit and collection policies or the creditworthiness of its customers.

In the most recent year, 2023, the DSO decreased to 71.74 days, although it remained higher than the levels observed in 2019 and 2021. This reduction could imply enhanced collections management or a change in customer payment behavior.

In conclusion, the fluctuating trend in Manhattan Associates, Inc.'s DSO over the past five years suggests varying efficiency in accounts receivable collection. Consistent monitoring and potential adjustments to credit and collection practices may be necessary to optimize cash flow and working capital management.