Marriott International Inc (MAR)

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		8.98	8.48	8.58	8.76	8.74	8.71	8.94	9.01	8.08	8.11	7.86	7.45	6.99	5.67	5.12	4.18	5.98	7.69	10.36	9.98
DSO	days	40.64	43.03	42.52	41.65	41.74	41.91	40.84	40.50	45.17	44.98	46.46	48.98	52.21	64.35	71.33	87.31	61.05	47.47	35.22	36.57

December 31, 2024 calculation

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

The Days of Sales Outstanding (DSO) for Marriott International Inc have shown fluctuations over the past few years. The DSO measures the average number of days it takes for the company to collect revenue after making a sale.

From March 31, 2020, to December 31, 2021, there was a steady increase in DSO from 36.57 days to 61.05 days, indicating a potential delay in collecting receivables. This prolonged collection period may signal issues with customer payment timelines or economic challenges impacting cash flows.

However, there was a reversal in trend from March 31, 2022, onwards as the DSO started declining. The decrease in DSO over the next few quarters suggests an improvement in the efficiency of Marriott's receivables management. A decreasing DSO usually indicates that the company is collecting payments more quickly, which can improve cash flow and liquidity.

The DSO continued to show a relatively stable and low range from March 31, 2023, to December 31, 2024, ranging from 40.50 days to 43.03 days. This stability in the DSO indicates that Marriott has been successful in managing its receivables effectively during this period.

Overall, the decreasing trend in the DSO after 2021 reflects a positive development for Marriott International Inc, showcasing a potential enhancement in their accounts receivable management and cash collection processes.