MGP Ingredients Inc (MGPI)
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 | 5.70 | 6.31 | 5.35 | 6.13 | 6.89 | 6.98 | 6.96 | 6.99 | 6.39 | 6.00 | 6.15 | 6.02 | 6.92 | 7.08 | 6.89 | 7.08 | 8.63 | 9.23 | 9.10 | 8.58 | |
| DSO | days | 63.98 | 57.89 | 68.20 | 59.56 | 53.00 | 52.31 | 52.43 | 52.20 | 57.12 | 60.88 | 59.32 | 60.66 | 52.75 | 51.52 | 52.97 | 51.57 | 42.32 | 39.54 | 40.11 | 42.56 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.70
= 63.98
The days of sales outstanding (DSO) measure for MGP Ingredients, Inc. over the past eight quarters indicates the average number of days it takes for the company to collect payment after making a sale. The trend in the DSO over the analyzed period shows some variability, ranging from a low of 52.20 days in Q1 2022 to a high of 68.20 days in Q2 2023.
The DSO figure in Q4 2023 was 63.48 days, an increase from the previous quarter's 57.89 days. This suggests that the company took longer to collect payments for sales made in the most recent quarter compared to the previous period.
In comparison to the same quarter a year ago, the DSO has increased from 53.00 days in Q4 2022 to 63.48 days in Q4 2023, indicating a lengthening of the collection period. This extended DSO may raise concerns about the company's accounts receivable management and liquidity.
Overall, it is important for MGP Ingredients, Inc. to closely monitor and manage its DSO to ensure efficient cash flow and timely collection of receivables to maintain financial stability and sustainable growth.