MasTec Inc (MTZ)
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 | 8.76 | 7.60 | 7.39 | 7.59 | 6.99 | 8.11 | 8.35 | 9.01 | 7.80 | 8.13 | 8.17 | 7.62 | 8.06 | 6.97 | 7.23 | 8.90 | 8.45 | 3.78 | 3.99 | 3.54 | |
| DSO | days | 41.69 | 48.03 | 49.37 | 48.12 | 52.25 | 44.99 | 43.72 | 40.51 | 46.79 | 44.90 | 44.65 | 47.91 | 45.30 | 52.36 | 50.45 | 41.03 | 43.21 | 96.46 | 91.44 | 103.12 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.76
= 41.69
Days Sales Outstanding (DSO) is a key ratio used to measure the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates the company is collecting payments more quickly, which is generally a positive indicator of efficient accounts receivable management.
Analyzing MasTec Inc's historical DSO data, we can observe fluctuation in the metric over time. In recent quarters, the DSO has been on a decreasing trend, suggesting improvements in the company's ability to convert sales into cash more promptly.
The DSO was highest in the first quarter of 2019 at 103.12 days, indicating a longer period taken to collect payments during that period. However, since then, there has been a notable decline in the DSO, with the metric currently standing at 41.69 days as of December 31, 2023.
This trend indicates that MasTec Inc has made significant progress in managing its accounts receivable efficiently and collecting payments in a timelier manner. A lower DSO can positively impact the company's cash flow and liquidity position, as it reduces the time between a sale being made and the receipt of cash.
It is essential for MasTec Inc to continue monitoring its DSO and work towards maintaining a reasonable level to ensure optimal cash flow management and financial stability.
Peer comparison
Dec 31, 2023