Materion Corporation (MTRN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.48 | 8.07 | 6.73 | 7.06 | 7.64 | |
| DSO | days | 43.07 | 45.25 | 54.24 | 51.73 | 47.75 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.48
= 43.07
The Days Sales Outstanding (DSO) ratio for Materion Corp has shown a decreasing trend over the past five years, indicating an improvement in the company's ability to collect its accounts receivable efficiently.
In particular, the DSO decreased from 47.65 days in 2019 to 42.25 days in 2023, reaching its lowest point over the period. This suggests that Materion Corp has become more effective in converting its accounts receivable into cash during the most recent year.
A lower DSO signifies that the company is managing its credit and collection activities more adeptly, potentially resulting in improved cash flows and working capital management. Overall, the decreasing trend in DSO reflects positively on Materion Corp's liquidity and operational efficiency in collecting payments from its customers.