Maximus Inc (MMS)

Days of sales outstanding (DSO)

		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	Dec 31, 2019
Receivables turnover		6.03	6.17	5.59	5.79	5.93	5.25	6.41	4.66	5.74	5.25	5.28	5.25	5.10	3.60	4.91	4.58	4.40	3.97	5.89	5.94
DSO	days	60.50	59.12	65.25	63.03	61.53	69.54	56.94	78.26	63.61	69.48	69.11	69.52	71.62	101.28	74.41	79.61	82.90	91.97	61.95	61.43

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.03
= 60.50

Days Sales Outstanding (DSO) is a key metric used to assess how efficiently a company is managing its accounts receivable. It indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO suggests that a company's customers are paying more quickly, which is favorable for cash flow and working capital management.

Analyzing Maximus Inc's DSO over the past several quarters reveals fluctuations in the collection period. For the latest reported quarter, ending September 30, 2024, Maximus Inc had a DSO of 60.50 days, slightly lower compared to the previous quarter's 59.12 days. This indicates that the company's accounts receivable turnover improved, as customers paid their bills slightly faster.

Looking at historical trends, Maximus Inc's DSO has shown variability over time, ranging from 56.94 days to 101.28 days over the past few years. The highest DSO of 101.28 days reported in the first quarter of 2021 may have raised concerns about the company's credit policies or collection efficiency. However, there has been a general downward trend in DSO since then, indicating potential improvements in accounts receivable management.

Overall, Maximus Inc's DSO trend suggests that the company has been making efforts to streamline its accounts receivable processes and improve collections. However, it is essential for the company to continue monitoring and managing DSO to ensure efficient cash flow and financial health.