Mettler-Toledo International Inc (MTD)

Days of sales outstanding (DSO)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Receivables turnover 5.64 5.90 5.91 5.82 5.71 6.16 6.10 6.17 5.53 6.38 6.17 6.17 5.74 6.00 5.79 5.64 5.20 5.73 5.99 5.74
DSO days 64.77 61.82 61.78 62.71 63.97 59.26 59.81 59.13 66.05 57.23 59.17 59.17 63.55 60.86 63.06 64.70 70.25 63.67 60.93 63.55

December 31, 2024 calculation

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

The Days Sales Outstanding (DSO) ratio for Mettler-Toledo International Inc shows the average number of days it takes the company to collect revenue after making a sale.

Analyzing the data provided, we observe fluctuations in the DSO over the quarters. From March 31, 2020, to December 31, 2020, the DSO increased from 63.55 days to 70.25 days indicating a potential delay in collecting receivables during this period. However, from March 31, 2021, to December 31, 2024, the DSO remained relatively stable in the range of 59 to 64 days, suggesting effective management of receivables.

The decrease in DSO from September 30, 2022, to December 31, 2022, followed by a subsequent increase by March 31, 2023, and further stabilization in the range of 59 to 64 days until December 31, 2024, indicates fluctuations in the efficiency of the company's accounts receivable collection.

Overall, a consistent DSO level or a downward trend is favorable as it implies faster collection of receivables and improved liquidity. Mettler-Toledo International Inc should continue monitoring and managing its DSO to ensure efficient working capital management and financial stability.