Manhattan Associates Inc (MANH)

Days of sales outstanding (DSO)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Receivables turnover 4.98 5.15 5.24 4.70 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
DSO days 73.28 70.83 69.72 77.66 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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.98
= 73.28

Based on the provided data, the days of sales outstanding (DSO) for Manhattan Associates Inc have fluctuated over the quarters from March 2020 to December 2024. The DSO metric represents the average number of days it takes for a company to collect payment after a sale has been made.

The trend reveals that the DSO remained relatively stable around the mid-60s range from March 2020 to September 2021, indicating that the company was efficient in collecting payments from customers during this period. However, there was a slight increase in DSO towards the end of 2021, with values reaching around 70 days, suggesting a potential delay in receivables collection.

The DSO increased further in 2022, hitting a peak of 79.69 days by December 31, 2022, which could indicate challenges in collecting outstanding payments within a reasonable timeframe. The metric improved slightly in the following quarters but remained elevated compared to previous years.

By the end of December 2024, the DSO had stabilized around the mid-70s range, reflecting a longer period for Manhattan Associates Inc to collect payments from customers. This trend may raise concerns about the company's accounts receivable management and potential cash flow implications.

Overall, the analysis of Manhattan Associates Inc's DSO suggests fluctuations in the efficiency of accounts receivable management and highlights the importance of monitoring and addressing any delays in receivables collection to maintain healthy cash flows and financial performance.