Marriott International Inc (MAR)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		8.98	8.74	8.08	6.99	5.98
DSO	days	40.64	41.74	45.17	52.21	61.05

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.98
= 40.64

Based on the data provided for Marriott International Inc, the Days of Sales Outstanding (DSO) have shown a consistent improvement over the years.

As of December 31, 2020, the DSO stood at 61.05 days, indicating that on average, it took the company around 61 days to collect revenue from its customers. However, this metric improved significantly by December 31, 2024, with the DSO reduced to 40.64 days.

The decreasing trend in DSO is a positive sign for Marriott International, suggesting that the company has been able to manage its receivables more efficiently. A lower DSO signifies faster collection of accounts receivable, which can improve the company's cash flow and working capital management.

Overall, the decreasing trend in DSO over the years reflects a tightening of credit policies, effective collection procedures, and potentially better customer creditworthiness. This improvement in DSO indicates enhanced liquidity and operational efficiency for Marriott International Inc.