Maximus Inc (MMS)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.03 | 5.93 | 5.74 | 5.10 | 4.40 | |
| DSO | days | 60.50 | 61.53 | 63.61 | 71.62 | 82.90 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.03
= 60.50
Days Sales Outstanding (DSO) measures how efficiently Maximus Inc collects revenue from its customers. A lower DSO indicates quicker cash conversion, which is generally favorable.
Over the past five years, Maximus Inc has shown a decreasing trend in DSO, from 82.90 days in 2020 to 60.50 days in 2024. This reduction suggests that the company has been improving its collections process and managing its accounts receivable more effectively.
Comparing the DSO figures for each year, it is evident that Maximus Inc has been steadily improving its working capital management. The decrease in DSO from 71.62 days in 2021 to 60.50 days in 2024 indicates that the company is collecting payments from customers at a faster rate.
Overall, the declining trend in DSO for Maximus Inc reflects positively on the company's liquidity position and efficiency in managing its accounts receivable. It indicates that Maximus Inc is effectively converting its sales into cash, which is essential for sustaining and growing the business.
Peer comparison
Sep 30, 2024