Mercer International Inc (MERC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.21 | 6.32 | 4.47 | 5.85 | 7.36 | |
| DSO | days | 58.74 | 57.72 | 81.63 | 62.45 | 49.62 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.21
= 58.74
Days Sales Outstanding (DSO) measures the average number of days it takes a company to collect revenue after making a sale. A lower DSO value indicates that the company is collecting cash more quickly from its customers.
Looking at Mercer International Inc.'s DSO over the past five years, we observe fluctuations in the collection period. In 2019, the DSO was the lowest at 38.79 days, indicating efficient collections. However, there was an increase in 2021 with a DSO of 59.41 days, suggesting a potential delay in collecting revenues.
The DSO decreased in 2022 to 53.84 days, indicating an improvement in collections. The latest data for 2023 shows a slight increase in DSO to 56.05 days. While the trend has shown some variability, Mercer International Inc. should monitor and potentially optimize its accounts receivable management to ensure timely collections and efficient cash flow.