Materion Corporation (MTRN)
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 | 8.48 | 8.85 | 8.91 | 8.30 | 8.07 | 11.73 | — | — | 6.73 | — | — | — | 2.19 | 2.03 | 2.15 | 2.35 | 2.16 | 2.13 | 2.44 | 2.35 | |
| DSO | days | 43.07 | 41.23 | 40.99 | 44.00 | 45.25 | 31.11 | — | — | 54.24 | — | — | — | 166.68 | 180.08 | 169.51 | 155.41 | 169.21 | 171.73 | 149.35 | 155.63 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.48
= 43.07
The Days of Sales Outstanding (DSO) for Materion Corp have shown a fluctuating trend over the past eight quarters. In Q4 2023, the DSO decreased to 42.25 days compared to the previous quarter's 40.48 days. This indicates that the company took slightly longer to collect its accounts receivable in Q4 2023.
Looking at the trend over the past year, the DSO has generally improved from a high of 54.05 days in Q1 2022 to the current level of 42.25 days in Q4 2023. This suggests that Materion Corp has been more effective in collecting payments from customers over time.
It is important to note that while a lower DSO can be positive as it signifies quicker collection of receivables, a very low DSO could also indicate overly strict credit policies which might impact sales volume. Therefore, a balance between efficiency in collections and maintaining customer relationships needs to be maintained. In conclusion, Materion Corp's DSO trend indicates improvement in accounts receivable management efficiency over the past year.