Masco Corporation (MAS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.21 | 7.46 | 6.76 | 6.71 | 6.87 | |
| DSO | days | 50.61 | 48.95 | 54.00 | 54.40 | 53.16 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.21
= 50.61
Masco Corp.'s Days Sales Outstanding (DSO) has shown a fluctuating trend over the past five years. In 2023, the DSO was 49.94 days, slightly higher than the previous year's 48.32 days. This indicates that, on average, it took Masco Corp. approximately 49.94 days to collect revenue from its customers in 2023.
Compared to 2021 and 2020, where the DSO was 51.03 days and 57.79 days respectively, the DSO has improved, suggesting more efficient accounts receivable management in recent years. Additionally, in 2019, the DSO was 54.26 days, showing a downward trend in collecting payments from customers over the five-year period.
Overall, the decreasing trend in DSO from 2020 onwards indicates that Masco Corp. has been improving its collections process, which could positively impact cash flow and working capital management. However, it is essential for the company to continue monitoring and managing its DSO to ensure timely collections and optimize liquidity.
Peer comparison
Dec 31, 2023