Matson Inc (MATX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.03 | 16.11 | 11.36 | 9.29 | 10.60 | |
| DSO | days | 33.09 | 22.65 | 32.14 | 39.31 | 34.44 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.03
= 33.09
Based on the data provided, Matson Inc's days of sales outstanding (DSO) has shown some variability over the past five years. The DSO has increased from 36.23 days in 2019 to 47.72 days in 2023, with fluctuations observed in the intervening years.
A higher DSO indicates that it takes Matson Inc longer to collect revenue from its customers. The increase in DSO over the years could suggest potential issues with the company's accounts receivable management or credit policies, leading to longer collection periods.
It is essential for Matson Inc to closely monitor and manage its DSO to ensure timely collection of receivables, as an excessively high DSO can tie up cash flow and affect liquidity. The company may need to assess its credit terms, invoicing and collection processes, and customer creditworthiness to improve its DSO and optimize working capital efficiency.
Peer comparison
Dec 31, 2023