Mativ Holdings Inc. (MATV)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.65 | 12.10 | 8.60 | 7.16 | 7.22 | 3.91 | 5.22 | 5.37 | 5.68 | 5.00 | 4.84 | 6.14 | 6.80 | 5.74 | 6.20 | 5.66 | 6.38 | 6.00 | 5.61 | 5.96 | |
| DSO | days | 34.29 | 30.17 | 42.44 | 50.98 | 50.54 | 93.24 | 69.91 | 67.96 | 64.26 | 72.93 | 75.41 | 59.42 | 53.69 | 63.60 | 58.87 | 64.50 | 57.22 | 60.78 | 65.08 | 61.26 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.65
= 34.29
To analyze Mativ Holdings Inc's days of sales outstanding (DSO) based on the provided data, we observe fluctuations in DSO over the past eight quarters. DSO measures the average number of days it takes a company to collect revenue after a sale is made.
In Q4 2023, the DSO decreased to 37.31 days from 28.80 days in Q3 2023, indicating that the company improved its efficiency in collecting receivables. However, when comparing Q4 2023 to Q4 2022, there was a significant reduction in DSO from 48.25 days to 37.31 days, suggesting a stronger performance in collecting receivables in the latest quarter.
In contrast, Q1 and Q2 of 2022 had comparatively higher DSO figures of 48.62 days and 40.54 days, respectively. This might indicate delays or inefficiencies in collecting revenue during those periods. Notably, Q3 2022 had a substantially high DSO of 90.36 days, which could be a cause for concern as it indicates a prolonged collection period that may impact the company's liquidity and cash flow.
Overall, it is essential for Mativ Holdings Inc to monitor and manage its DSO effectively to ensure timely collection of accounts receivable and maintain a healthy cash flow position. The recent improvement in DSO is a positive trend, but the company should strive for consistency and aim to keep DSO at optimal levels to support its financial health and operations.
Peer comparison
Dec 31, 2023