Meritage Corporation (MTH)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |
| DSO | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
To analyze Meritage Homes Corp.'s days of sales outstanding (DSO) trend, we compare the DSO values over the past eight quarters. DSO measures how efficiently a company manages its accounts receivable by showing how many days it takes for a company to collect revenue after making a sale.
From Q1 2022 to Q4 2023, we observed a general increase in DSO. The DSO increased from 10.65 days in Q1 2022 to 15.94 days in Q4 2023. This increase indicates that Meritage Homes Corp. is taking longer to collect its accounts receivable, which may suggest potential challenges in cash flow management or collection processes.
Despite some fluctuations in between quarters, the overall trend shows a steady rise in DSO. It is essential for the company to monitor and manage its DSO effectively to ensure timely collection of receivables and maintain a healthy cash flow position. Potential strategies to address this trend could include implementing stricter credit policies, improving collection processes, and analyzing customer payment behaviors to mitigate any negative impact on the company's financial performance.
Peer comparison
Dec 31, 2023