MKS Instruments Inc (MKSI)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		5.74	5.41	4.69	6.61	5.86
DSO	days	63.61	67.51	77.82	55.25	62.30

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.74
= 63.61

The Days of Sales Outstanding (DSO) for MKS Instruments Inc has shown some fluctuations over the past five years. In 2020, the DSO stood at 62.30 days, indicating the average number of days it takes for the company to collect its accounts receivable.

In the following year, the DSO decreased to 55.25 days, suggesting an improvement in the company's efficiency in collecting revenues from its customers. However, in 2022, the DSO increased significantly to 77.82 days, which may raise concerns about the company's ability to manage its receivables effectively.

In 2023, there was a slight decrease in the DSO to 67.51 days, but it still remained higher compared to the previous years. Subsequently, in 2024, the DSO improved to 63.61 days, indicating a better performance in collecting accounts receivable.

Overall, the trend in MKS Instruments Inc's DSO over the past five years shows some variability, with periods of improvement and some challenges in managing accounts receivable efficiently. It is essential for the company to monitor and work towards maintaining a reasonable DSO to ensure a healthy cash flow and financial stability.