MasterBrand Inc. (MBC)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|---|
| Receivables turnover | 14.14 | 12.54 | 12.50 | 11.98 | |
| DSO | days | 25.82 | 29.11 | 29.20 | 30.48 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.14
= 25.82
Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is managing its accounts receivable. In the case of MasterBrand Inc., the DSO has been consistently decreasing over the past year. As of December 31, 2024, the company's DSO stood at 25.82 days, indicating that it takes approximately 25.82 days for MasterBrand to collect its accounts receivable.
The decreasing trend in DSO from 30.48 days on March 31, 2024, to 29.20 days on June 30, 2024, and further down to 29.11 days on September 30, 2024, before reaching 25.82 days on December 31, 2024, suggests that MasterBrand has been improving its efficiency in collecting payments from customers. A lower DSO typically signifies that the company is able to collect payments more quickly, which can free up cash flow and improve liquidity.
Overall, the decreasing trend in DSO for MasterBrand Inc. indicates effective accounts receivable management and a potential improvement in working capital efficiency. As the company continues to reduce its DSO, it may enhance its financial health and operational performance in the future.
Peer comparison
Dec 31, 2024