The Mosaic Company (MOS)
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 | 11.14 | 9.46 | 13.12 | 13.00 | 11.25 | 10.70 | 7.83 | 9.61 | 8.07 | 10.33 | 10.93 | 10.98 | 9.85 | 9.94 | 12.02 | 11.72 | 11.10 | 12.10 | 13.91 | 12.32 | |
| DSO | days | 32.76 | 38.57 | 27.83 | 28.09 | 32.44 | 34.13 | 46.59 | 37.99 | 45.25 | 35.33 | 33.39 | 33.23 | 37.04 | 36.71 | 30.38 | 31.14 | 32.89 | 30.16 | 26.23 | 29.62 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.14
= 32.76
To analyze Mosaic Company's days of sales outstanding (DSO) trend, we first note that DSO measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates a faster collection of accounts receivable, which can be a positive indicator of a company's cash flow efficiency.
From the data provided, we can observe a fluctuating trend in Mosaic Company's DSO over the past eight quarters. In Q4 2023, the DSO decreased to 41.00 days from 43.34 days in Q3 2023. This suggests an improvement in the company's ability to collect its sales revenue more promptly compared to the previous quarter.
Looking further back, we see that the DSO was relatively stable in Q2 and Q1 2023, staying around 34-36 days. This stability can indicate consistent and efficient accounts receivable management during that period.
However, there was a notable increase in DSO in Q2 and Q3 2022, reaching 56.38 days and 43.31 days, respectively. This may raise concerns about delays in collecting outstanding receivables during those quarters.
Overall, while the recent decrease in DSO in Q4 2023 is a positive sign, it is essential for Mosaic Company to strive for consistency in efficiently managing its accounts receivable to ensure steady cash flow and financial stability in the long term. Monitoring DSO trends over time and comparing them to industry benchmarks can provide valuable insights into the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023
See also:
The Mosaic Company Average Receivable Collection Period (Quarterly Data)