Mercury Systems Inc (MRCY)

Analysis of Mercury Systems Inc.'s Days of Sales Outstanding (DSO) over the period from June 30, 2021, to June 30, 2025, reveals notable fluctuations in the company's accounts receivable collection efficiency.

As of June 30, 2021, the DSO stood at 115.24 days, indicating that it took approximately 115 days for the company to collect its receivables. Over the following year, this metric increased significantly to 165.42 days by June 30, 2022, representing a deterioration in receivables turnover and suggesting potential challenges in cash collection or a strategic extension of credit terms.

The upward trend persisted into 2023, with DSO reaching 190.13 days, which is nearly 75 days longer than the level observed two years earlier. This sustained increase indicates a continued delay in collecting receivables and may reflect alterations in customer payment behavior, credit policies, or billing cycles. Such an elongation in collection period could adversely impact the company's liquidity position and working capital management.

However, a reversal in the trend is observed in the subsequent period. By June 30, 2024, the DSO decreased to 181.55 days, suggesting an improvement in receivables collections, although it still remained substantially elevated compared to 2021. The latest data point, as of June 30, 2025, shows a further reduction to 155.31 days, indicating ongoing progress toward more efficient receivables management and a potential normalization of collection times.

Overall, the DSO dynamics over these years suggest that Mercury Systems Inc. experienced a significant weakening in receivables collection efficiency during 2022 and 2023, followed by a gradual recovery in 2024 and 2025. These movements warrant ongoing monitoring to determine whether the recent improvements indicate a sustainable trend or temporary fluctuation, with implications for the company's liquidity and credit management strategies.

Peer comparison

Jun 30, 2025