Meritage Corporation (MTH)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | |
| DSO | days | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
The days of sales outstanding (DSO) for Meritage Homes Corp. have shown an upward trend over the past five years, indicating a slowdown in collecting payments from customers. In 2023, the DSO increased to 15.94 days from 12.52 days in 2022, which was already higher than the 10.52 days in 2021. This suggests that the company may be experiencing challenges in collecting payments efficiently and may have extended credit terms to customers.
Compared to 2020 and 2019, where the DSO was 8.03 days and 8.85 days, respectively, the current DSO level in 2023 indicates a significant increase in the average number of days it takes for Meritage Homes Corp. to collect on its sales. This prolonged collection period could potentially impact the company's cash flow and liquidity position if not managed effectively.
Further analysis and monitoring of the company's accounts receivable processes and credit policies may be warranted to address this trend and optimize cash flow management.
Peer comparison
Dec 31, 2023