Merit Medical Systems Inc (MMSI)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.56	6.43	6.28	6.17	5.94
DSO	days	55.61	56.73	58.08	59.20	61.43

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.56
= 55.61

The Days of Sales Outstanding (DSO) metric for Merit Medical Systems, Inc. has shown a consistent improvement over the past five years. The trend indicates that the company's ability to collect accounts receivable has been progressively more efficient, decreasing from 61.83 days in 2019 to 54.94 days in 2023. This signifies that it took the company approximately 55 days on average to collect outstanding sales revenue in 2023, which is a positive indicator of effective credit management and collection practices. The declining trend in DSO suggests that Merit Medical Systems has been successful in accelerating its cash conversion cycle and maintaining a healthier cash flow position over the years.