Mativ Holdings Inc. (MATV)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.46 | 7.30 | 5.73 | 6.74 | 6.33 | |
| DSO | days | 38.58 | 49.99 | 63.66 | 54.14 | 57.68 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.46
= 38.58
The days of sales outstanding (DSO) for Mativ Holdings Inc have improved over the past five years. In 2023, the DSO decreased to 37.31 days from 48.25 days in 2022, indicating that the company collected its accounts receivable more efficiently in the most recent year. This is a positive sign as it suggests that the company's ability to collect revenue from customers has improved.
Looking back further, we see a declining trend in DSO from 2021 to 2023. In 2021, the DSO was 62.86 days, which decreased to 52.56 days in 2020, and further decreased to 55.56 days in 2019. This consistent improvement in DSO over the years reflects positively on Mativ Holdings Inc's credit management and collection processes.
Overall, the decreasing trend in DSO indicates that the company is managing its accounts receivable effectively and is able to convert its sales into cash more quickly. This improvement can help enhance the company's liquidity position and financial performance.
Peer comparison
Dec 31, 2023