Masimo Corporation (MASI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.35 | 108.58 | 6.10 | 7.96 | 308.09 | |
| DSO | days | 68.26 | 3.36 | 59.85 | 45.84 | 1.18 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.35
= 68.26
Masimo Corporation's Days Sales Outstanding (DSO) has exhibited significant fluctuations over the past five years. In 2023, the DSO increased to 68.26 days, a substantial rise from the exceptionally low value of 3.36 days in 2022. This surge indicates a notable increase in the time it takes the company to collect its accounts receivable, signaling potential challenges in managing its receivables.
Comparing the DSO to previous years, Masimo Corporation's 2023 DSO is higher than the 2021 value of 59.85 days, suggesting a worsening trend in accounts receivable collection efficiency. However, it is lower than the value of 45.84 days recorded in 2020. The sharp increase in DSO from 1.18 days in 2019 to 68.26 days in 2023 highlights a significant shift in the company's credit and collection policies, indicating a potential need for closer scrutiny and improvement in accounts receivable management practices.
Overall, the recent increase in Masimo Corporation's DSO warrants a closer examination into the factors driving this change and the potential impact on the company's cash flow and overall financial performance.
Peer comparison
Dec 31, 2023