Mettler-Toledo International Inc (MTD)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		5.64	5.71	5.53	5.74	5.20
DSO	days	64.77	63.97	66.05	63.55	70.25

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.64
= 64.77

The Days of Sales Outstanding (DSO) for Mettler-Toledo International Inc have shown a decreasing trend over the past five years. As of December 31, 2020, the DSO was 70.25 days, which decreased to 63.55 days by December 31, 2021. Subsequently, there was a slight increase to 66.05 days by December 31, 2022, followed by a further decrease to 63.97 days by December 31, 2023. The most recent data point as of December 31, 2024, indicates a DSO of 64.77 days.

This decreasing trend in DSO suggests that the company has been more efficient in collecting its accounts receivable over the years. A lower DSO value indicates that Mettler-Toledo International Inc is collecting payments from its customers more quickly, which can improve cash flow and working capital management. This trend may reflect effective credit policies, streamlined collection processes, or better customer payment behavior.

Overall, the decreasing DSO trend for Mettler-Toledo International Inc is a positive indicator of the company's ability to efficiently manage its accounts receivable and convert sales into cash, which is essential for maintaining liquidity and financial stability.