Masimo Corporation (MASI)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		104.08	5.35	108.58	6.10	7.96
DSO	days	3.51	68.26	3.36	59.85	45.84

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 104.08
= 3.51

To analyze Masimo Corporation's Days Sales Outstanding (DSO) over the past five years:

1. In December 31, 2020, the DSO was 45.84 days, indicating that on average, it took the company 45.84 days to collect its accounts receivable.

2. By December 31, 2021, the DSO increased to 59.85 days, suggesting a longer period for the company to collect its sales revenue compared to the previous year.

3. Surprisingly, by December 31, 2022, the DSO decreased significantly to 3.36 days, which could indicate an improvement in the company's accounts receivable management or changes in sales terms.

4. However, in December 31, 2023, the DSO rose again to 68.26 days, surpassing the level seen in 2021. This increase may raise concerns about the efficiency of the company's credit and collection policies.

5. Finally, in December 31, 2024, the DSO marginally increased to 3.51 days, showing a similarity to the level observed in 2022, despite the previous year's spike.

Overall, fluctuations in Masimo Corporation's DSO over the years signify changes in the company's accounts receivable collection efficiency and credit policies, which may require further investigation to ensure optimal financial performance and cash flow management.