Mercury Systems Inc (MRCY)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.50 | 7.81 | 6.84 | 7.17 | 6.61 | |
| DSO | days | 48.70 | 46.75 | 53.37 | 50.88 | 55.18 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.50
= 48.70
Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting its receivables more quickly, while a higher DSO may suggest inefficiencies or potential issues with collecting payments.
Analyzing Mercury Systems Inc's DSO over the past five years, we observe the following trends:
- In the most recent fiscal year, ending June 30, 2024, the DSO was 48.70 days, showing a slight increase from the previous year.
- The DSO for the fiscal year ending June 30, 2023, was 46.75 days, indicating a decrease from the prior year.
- The DSO for the fiscal year ending June 30, 2022, was 53.37 days, reflecting an increase compared to the previous year.
- For the fiscal year ending June 30, 2021, the DSO was 50.88 days, showing a decrease from the prior year.
- In the fiscal year ending June 30, 2020, the DSO was 55.18 days, indicating a decrease from the prior year.
Overall, the fluctuation in Mercury Systems Inc's DSO over the past five years suggests varying levels of efficiency in collecting accounts receivable. It is important for the company to monitor and manage its DSO effectively to ensure timely collection of payments and optimize cash flow.
Peer comparison
Jun 30, 2024