Madison Square Garden Sports Corp (MSGS)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | 13.08 | 6.85 | 97.87 | |
| DSO | days | — | — | 27.91 | 53.29 | 3.73 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Madison Square Garden Sports Corp's Days of Sales Outstanding (DSO) measures how long it takes the company to collect its accounts receivable. It is calculated by dividing accounts receivable by average daily sales. A lower DSO indicates better receivables management and quicker conversion of sales into cash.
In the given data, we observe a fluctuating trend in DSO over the past five years. In June 2020, the DSO was exceptionally low at 3.73 days, indicating that the company was efficient in collecting its receivables. However, in the following years, the DSO increased significantly, reaching 53.29 days in June 2021 and then dropping to 27.91 days in June 2022.
The reduction in DSO from 2021 to 2022 suggests that the company improved its accounts receivable collection process during that period. Nevertheless, the DSO remains elevated compared to the exceptionally low level in 2020. This indicates a potential area for further improvement in managing receivables efficiently.
Overall, the trend in Madison Square Garden Sports Corp's DSO shows variability over the years, with fluctuations that may warrant monitoring and potential strategies to streamline the collection of accounts receivable for optimal cash flow management.
Peer comparison
Jun 30, 2024