Merit Medical Systems Inc (MMSI)

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		6.59	6.69	6.47	6.31	6.44	6.79	6.56	6.54	6.29	6.50	6.34	6.05	6.19	6.37	6.49	6.22	5.96	6.14	5.60	5.79
DSO	days	55.40	54.57	56.40	57.85	56.65	53.78	55.64	55.79	58.04	56.14	57.58	60.31	58.98	57.31	56.28	58.71	61.26	59.43	65.19	63.09

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.59
= 55.40

To analyze Merit Medical Systems, Inc.'s days of sales outstanding (DSO), we should first note that DSO represents the average number of days it takes for a company to collect payments from its customers after a sale is made. A lower DSO typically indicates a more efficient accounts receivable process.

Looking at the DSO trend over the past eight quarters, we observe a fairly consistent range between 54.88 to 57.81 days. The highest DSO was recorded in Q1 2023 at 57.81 days, while the lowest was in Q4 2023 at 54.94 days.

Overall, the DSO has not shown significant fluctuations, suggesting that Merit Medical Systems maintains a stable accounts receivable collection process. However, there may be room for improvement to reduce the number of days outstanding, which could positively impact cash flow and working capital management.

It would be beneficial for the company to continue monitoring and potentially streamlining its accounts receivable procedures to ensure prompt collections and enhance overall financial performance.