MKS Instruments Inc (MKSI)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		5.47	5.30	5.32	5.77	5.40	5.61	5.55	5.84	4.69	4.29	6.22	6.21	6.61	6.38	6.20	5.87	5.88	5.90	5.30	5.10
DSO	days	66.77	68.88	68.59	63.29	67.53	65.06	65.80	62.45	77.82	85.06	58.64	58.80	55.25	57.25	58.92	62.23	62.12	61.87	68.89	71.55

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.47
= 66.77

The Days Sales Outstanding (DSO) for MKS Instruments Inc has shown some fluctuations over the disclosed periods. From March 31, 2020, to December 31, 2022, the company managed to consistently maintain its DSO below 80 days, indicating efficient management of accounts receivable collections. The lowest DSO was observed on December 31, 2021, at 55.25 days, suggesting a strong ability to convert sales into cash.

However, there was a notable increase in DSO in the following quarters, reaching 85.06 days on September 30, 2022. This increase may raise concerns about potential challenges in collecting outstanding payments on time. It's essential for the company to address any underlying issues or adjust its credit policies to ensure timely receipt of payments and maintain healthy liquidity levels.

Subsequently, there was a slight improvement in DSO in the following periods, with values ranging between 62.45 days and 68.88 days. Monitoring DSO trends is crucial for assessing the effectiveness of the company's credit and collection policies and evaluating its overall financial health and liquidity position.