Middleby Corp (MIDD)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.28 | 6.43 | 5.63 | 6.91 | 6.61 | |
| DSO | days | 58.16 | 56.73 | 64.81 | 52.83 | 55.22 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.28
= 58.16
Middleby Corp's Days Sales Outstanding (DSO) is a measure of how long it takes for the company to collect revenue from its sales. Over the past five years, there has been some fluctuation in the DSO ratio. In 2023, the DSO was 58.16 days, slightly higher than the previous year's 56.73 days. This indicates that on average, it took Middleby Corp about 58 days to collect its receivables from customers in 2023.
Compared to 2021, where the DSO was 64.81 days, the company improved its collection efficiency in 2023. However, it still lags behind the DSO ratio of 52.83 days in 2020. With a DSO of 55.22 days in 2019, there has been a slight increase in the time taken to collect receivables over the past five years.
Overall, Middleby Corp's DSO has shown some variability but has generally been in a manageable range. It is important for the company to monitor this ratio closely to ensure efficient management of accounts receivable and timely collection of revenue.
Peer comparison
Dec 31, 2023