MasTec Inc (MTZ)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.76 | 6.99 | 7.80 | 8.06 | 8.45 | |
| DSO | days | 41.69 | 52.25 | 46.79 | 45.30 | 43.21 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.76
= 41.69
MasTec Inc's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect its accounts receivable. A lower DSO indicates faster collections and better liquidity management.
Looking at the trend over the past five years, MasTec Inc's DSO has varied. In 2023, the DSO decreased to 41.69 days from 52.25 days in 2022, which suggests an improvement in the company's ability to collect receivables more efficiently.
Comparing the DSO to 2021, when it was 46.79 days, MasTec's DSO further decreased in 2023. This indicates that the company has been successful in reducing the time it takes to collect payments from customers, potentially enhancing cash flow efficiency.
Moreover, when comparing to 2020 and 2019, where the DSO was 45.30 days and 43.21 days respectively, the downward trend in DSO over the years reflects positively on MasTec's credit and collection policies.
Overall, the decreasing trend in Days of Sales Outstanding for MasTec Inc indicates an improvement in its accounts receivable management and liquidity position, which can be favorable for the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023