Matson Inc (MATX)

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		11.03	10.14	11.86	13.66	16.11	14.58	12.47	11.74	11.36	10.15	9.27	9.79	9.30	9.37	9.86	9.86	10.59	9.85	10.45	10.21
DSO	days	33.09	35.99	30.78	26.72	22.65	25.03	29.27	31.09	32.14	35.96	39.35	37.30	39.26	38.95	37.01	37.01	34.46	37.04	34.94	35.74

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.03
= 33.09

Days Sales Outstanding (DSO) is a crucial metric that indicates the average number of days it takes for a company, in this case, Matson Inc, to collect its accounts receivable. A lower DSO value is generally more favorable as it suggests that the company is collecting payments more quickly, indicating strong liquidity and efficient management of its receivables.

Analyzing the trend in Matson Inc's DSO over the past eight quarters, we observe fluctuations in the values. In Q1 2022, the DSO was 30.96 days, which decreased to 24.94 days by Q3 2022. This significant decrease over the two quarters indicated an improvement in the company's collections efficiency.

However, the trend reversed in the following quarters, with the DSO increasing to 36.92 days in Q4 2022 and further increasing to a peak of 47.72 days in Q4 2023. This rise in DSO over the recent quarters may raise concerns about Matson Inc's ability to collect outstanding receivables promptly.

It is essential for investors and stakeholders to closely monitor this metric, as a consistently increasing DSO could indicate potential issues with the company's credit policies, collection practices, or the creditworthiness of its customers. Management should focus on strategies to effectively manage accounts receivable and improve the efficiency of the collection process to maintain healthy cash flows and overall financial performance.