Marathon Petroleum Corp (MPC)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		12.74	13.10	10.83	11.93	15.75
DSO	days	28.64	27.87	33.71	30.61	23.18

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.74
= 28.64

To analyze Marathon Petroleum Corp's Days of Sales Outstanding (DSO) over the past five years, we observe a fluctuating trend. The DSO metric represents the average number of days it takes for the company to collect revenue after making a sale.

In 2023, the DSO was 28.40 days, indicating a slight increase from 2022's 27.60 days. The 2023 figure suggests that Marathon Petroleum Corp took approximately 28.40 days to collect its sales revenue, which may be a reflection of the company's credit policies, efficiency in collections, or changes in customer payment behavior.

Comparing this to the previous years, we note that the DSO was the highest in 2021 at 33.44 days, reflecting a slower collection process. In 2020, the DSO was 30.08 days, indicating an improvement from 2021. The most efficient collection was observed in 2019 with a DSO of 23.15 days.

Overall, the fluctuation in DSO over the years may suggest changes in the company's credit and collection policies, efficiency in managing accounts receivable, or shifts in customer payment habits. A lower DSO is generally preferred as it indicates faster cash conversion and tighter credit control. Marathon Petroleum Corp's management may need to closely monitor and manage its DSO to ensure optimal cash flow and liquidity management.