Matthews International Corporation (MATW)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.72 | 9.06 | 7.97 | 5.39 | 5.08 | |
| DSO | days | 41.87 | 40.27 | 45.77 | 67.67 | 71.91 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.72
= 41.87
The days of sales outstanding (DSO) for Matthews International Corporation have shown a trend of improvement over the past five years. As of September 30, 2024, the DSO decreased to 41.87 days compared to 40.27 days in the previous year, indicating a slightly longer collection period for accounts receivable.
Looking further back, the DSO was 45.77 days in 2022, 67.67 days in 2021, and 71.91 days in 2020, showing a significant improvement in the efficiency of collecting payments from customers over the years.
A lower DSO signifies that the company is collecting payments from its customers more quickly, which can improve cash flow and liquidity. It suggests effective credit and collection management practices, tighter credit policies, and potentially stronger customer relationships.
Overall, the decreasing trend in DSO for Matthews International Corporation reflects positively on the company's receivables management and financial performance in terms of efficiently converting credit sales into cash.