Madison Square Garden Sports Corp (MSGS)
Days of sales outstanding (DSO)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 35.30 | 12.82 | 11.99 | 10.67 | 7.74 | |
| DSO | days | 10.34 | 28.46 | 30.45 | 34.19 | 47.14 |
June 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 35.30
= 10.34
The data indicates a consistent decline in Madison Square Garden Sports Corp’s days of sales outstanding (DSO) over the period from June 30, 2021, to June 30, 2025. Specifically, the DSO decreased from 47.14 days in 2021 to 34.19 days in 2022, representing a reduction of approximately 12.95 days. The trend continued into 2023, with the DSO further decreasing to 30.45 days, reflecting an additional decline of about 3.74 days. In 2024, the DSO fell again to 28.46 days, a further improvement of nearly 2 days. The most notable change occurs in 2025, with the DSO dropping sharply to 10.34 days, which suggests a significant acceleration in the collection process or a change in the company's credit and billing policies.
This downward trend in DSO over the examined period indicates an improvement in the company's collection efficiency and a shorter duration between sales and cash collection. Such a development generally points to more effective receivables management and possibly stricter credit policies or accelerated invoicing and collections. The substantial decrease in 2025 could also reflect changes in revenue recognition practices or a shift toward cash-based or quicker cash conversion models.
Overall, the trajectory of decreasing DSO levels points to enhanced liquidity management and potentially improved working capital dynamics for Madison Square Garden Sports Corp. This trend is favorable for the company’s short-term liquidity position, as it suggests faster conversion of receivables into cash, reducing the risk of receivables becoming overdue or uncollectible.
Peer comparison
Jun 30, 2025