Merit Medical Systems Inc (MMSI)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 6.55 6.56 6.43 6.28 6.17
DSO days 55.73 55.61 56.73 58.08 59.20

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.55
= 55.73

Based on the data provided, Merit Medical Systems Inc has shown a consistent improvement in its days of sales outstanding (DSO) over the years. The DSO decreased from 59.20 days as of December 31, 2020, to 55.73 days as of December 31, 2024. This downward trend indicates that the company has been able to collect its accounts receivable more efficiently, which is a positive sign of effective working capital management. Furthermore, the gradual reduction in DSO suggests that Merit Medical Systems Inc has been successful in managing its credit policies and collection practices, contributing to improved liquidity and potentially strengthening its cash flow position.