MGM Resorts International (MGM)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		14.57	16.02	10.39	10.45	10.57
DSO	days	25.05	22.78	35.14	34.93	34.53

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.57
= 25.05

The Days of Sales Outstanding (DSO) for MGM Resorts International have shown a decreasing trend over the past five years, indicating an improvement in the company's ability to collect accounts receivable efficiently. In 2023, the DSO was 24.17 days, compared to 25.72 days in 2022, 32.34 days in 2021, 39.59 days in 2020, and 38.90 days in 2019.

The decreasing trend in DSO suggests that MGM Resorts International has been able to collect payments from its customers faster in recent years, which may be attributed to effective credit and collections policies, improved cash management practices, or stronger customer relationships. A lower DSO value signifies that the company is converting its accounts receivable into cash more quickly, which is beneficial for enhancing liquidity and working capital management.

Overall, the declining trend in DSO reflects positively on the financial health and operational efficiency of MGM Resorts International in managing its accounts receivable and cash flow. It indicates an improvement in the company's ability to efficiently convert sales into cash, contributing to better financial performance and stability.