Mattel Inc (MAT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.90 | 6.08 | 4.74 | 4.22 | 4.60 | |
| DSO | days | 74.45 | 60.04 | 76.99 | 86.43 | 79.42 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.90
= 74.45
The Days of Sales Outstanding (DSO) is a key metric used to evaluate how quickly a company collects its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally seen as positive.
Analyzing Mattel Inc's DSO over the past five years, we observe fluctuations in the metric. In 2023, the DSO stood at 74.45 days, showing an increase compared to the previous year's DSO of 60.04 days. This increase suggests that Mattel took longer to collect payments from customers in 2023.
Comparing the DSO in 2023 to the DSO in 2021 and 2022, we note that it was still lower than 2021's DSO of 76.99 days, but higher than 2022's DSO. This indicates that while there was an improvement from 2022, the company's collection period in 2023 was longer than in 2021.
Furthermore, the DSO in 2023 was lower than in 2020 and 2019, signaling an improvement in the efficiency of Mattel's accounts receivable collection process over the past two years.
Overall, while there was an uptick in DSO in 2023 compared to the previous year, it still remains within a reasonable range. It will be important to monitor future trends to ensure efficient management of accounts receivable and timely collection of payments.