Metallus Inc (MTUS)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		11.71	15.37	12.69	13.32	15.85
DSO	days	31.16	23.75	28.76	27.39	23.03

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.71
= 31.16

The days of sales outstanding (DSO) for Metallus Inc have shown fluctuating trends over the past five years. In 2019, the DSO was 23.03 days, indicating that on average, it took the company approximately 23 days to collect its accounts receivable. This metric increased to 27.39 days in 2020 before decreasing slightly to 28.76 days in 2021. However, there was a notable improvement in 2022 when the DSO dropped to 23.75 days, suggesting more efficient collections during that period.

In the most recent year, 2023, the DSO increased to 31.16 days, indicating a potential lengthening in the collection period compared to the previous year. This rise in DSO could point to challenges in collecting accounts receivable promptly or could signify changes in the company's credit policies or customer payment behavior.

Overall, monitoring the DSO trend is crucial for assessing the company's liquidity and effectiveness in managing accounts receivable. A lower DSO typically indicates more efficient collections and better cash flow management, while a higher DSO may raise concerns about potential liquidity issues or inefficiencies in the collection process. It is advisable for Metallus Inc to further investigate the reasons behind the recent increase in DSO to address any underlying issues and maintain financial health.