Materion Corporation (MTRN)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.51 | 8.48 | 8.07 | 6.73 | 7.06 | |
| DSO | days | 42.90 | 43.07 | 45.25 | 54.24 | 51.73 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.51
= 42.90
The days of sales outstanding (DSO) for Materion Corporation have shown a fluctuating trend over the past five years. In December 2020, the DSO stood at 51.73 days, indicating that on average, it took approximately 51.73 days for the company to collect its accounts receivable.
By December 2021, the DSO increased slightly to 54.24 days, suggesting a potential delay in collecting receivables compared to the previous year. However, the trend reversed in the following years. By December 2022, the DSO decreased significantly to 45.25 days, indicating an improvement in the company's collection efficiency.
Further improvement was observed in December 2023, with the DSO decreasing to 43.07 days, signaling that Materion Corporation was able to collect its accounts receivable more quickly. This trend continued in December 2024, where the DSO decreased slightly to 42.90 days, indicating continued efficiency in receivables management.
Overall, the decreasing trend in DSO over the years reflects a positive development in Materion Corporation's ability to manage its accounts receivable effectively and efficiently, ultimately enhancing the company's cash flow and liquidity position.