Manhattan Associates Inc (MANH)

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		5.11	4.84	4.74	5.03	4.58	5.16	5.32	5.19	5.22	5.55	5.44	5.55	5.29	5.63	5.60	5.55	6.04	5.62	5.87	5.37
DSO	days	71.45	75.49	76.97	72.61	79.69	70.73	68.65	70.27	69.86	65.82	67.07	65.78	69.01	64.80	65.12	65.73	60.44	64.97	62.14	67.96

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.11
= 71.45

Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is managing its accounts receivable. In the case of Manhattan Associates, Inc., the DSO has fluctuated over the past eight quarters, ranging from a low of 68.66 days in Q2 2022 to a high of 79.66 days in Q4 2022.

For the most recent quarter, Q4 2023, the DSO stands at 71.74 days. This indicates that on average, it takes Manhattan Associates approximately 71.74 days to collect payments from its customers after making a sale. A lower DSO is generally preferred as it suggests faster collection of receivables and better cash flow management.

Comparing the DSO of Q4 2023 to previous quarters, we see a slight improvement from Q3 2023 (75.33 days) and Q2 2023 (76.79 days). However, it is worth noting that the DSO increased compared to Q1 2023 (72.43 days). This indicates that Manhattan Associates may have experienced some challenges in collecting payments efficiently during Q4 2023.

Overall, Manhattan Associates should continue to monitor and strive to decrease its DSO over time to optimize the efficiency of its accounts receivable management and enhance its cash flow position.