MKS Instruments Inc (MKSI)

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		5.40	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	5.49	5.59	5.93	5.86
DSO	days	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	66.53	65.34	61.53	62.33

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.40
= 67.53

Days of Sales Outstanding (DSO) is a key financial ratio that measures the average number of days a company takes to collect revenue after making a sale. A lower DSO indicates that the company is collecting payments faster, which can lead to better cash flow management and liquidity. On the other hand, a higher DSO may suggest potential issues with accounts receivable management or credit policies.

Analyzing MKS Instruments Inc's DSO over the past few quarters, we observe fluctuations in the metric. In the latest quarter, Dec 31, 2023, the DSO stood at 67.53 days, which was slightly higher compared to the previous quarter's 65.06 days. This increase may signal that the company took longer to collect payments from customers in the recent period.

Looking back over the past few years, there is variability in MKS Instruments Inc's DSO, with some quarters showing higher values such as 77.82 days in Dec 31, 2022, and 85.06 days in Sep 30, 2022. These elevated DSO figures in those quarters may indicate challenges in managing accounts receivable or payment collection processes.

Overall, it is important for MKS Instruments Inc to closely monitor and manage its DSO to ensure efficient cash flow management and timely collection of revenues. The company may need to assess its credit policies, collections procedures, and customer payment terms to optimize its DSO and improve working capital efficiency.