Mercer International Inc (MERC)
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 | 6.21 | 7.58 | 6.25 | 6.23 | 6.32 | 6.69 | 6.83 | 4.95 | 4.47 | 6.35 | 6.49 | 5.88 | 5.99 | 6.38 | 6.48 | 6.49 | 7.51 | 6.91 | 5.61 | 4.80 | |
| DSO | days | 58.74 | 48.16 | 58.43 | 58.60 | 57.72 | 54.54 | 53.47 | 73.68 | 81.63 | 57.47 | 56.20 | 62.13 | 60.98 | 57.24 | 56.30 | 56.25 | 48.57 | 52.82 | 65.09 | 75.99 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.21
= 58.74
To analyze Mercer International Inc.'s Days of Sales Outstanding (DSO) over the past eight quarters, we observe fluctuations in the metric. DSO represents the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates quicker cash collection and potentially more efficient credit management.
Looking at the data, we see a general trend where DSO has been relatively stable, hovering around the high 40s to low 70s range. In Q1 and Q3 of 2022, the DSO was notably elevated at 71.37 days and 53.4 days, respectively. This suggests slightly slower collection periods during these quarters.
However, the DSO improved in Q3 and Q4 of 2023, reaching 46.25 days and 56.05 days, respectively, indicating a better collection efficiency compared to the previous quarters.
Overall, Mercer International Inc. should continue to monitor and potentially optimize their credit and collection processes to maintain an optimal balance between maximizing sales and efficiently collecting cash.