Mueller Water Products (MWA)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.10 | 5.75 | 5.36 | 4.96 | 5.33 | |
| DSO | days | 59.83 | 63.46 | 68.09 | 73.56 | 68.45 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.10
= 59.83
The data indicates that Mueller Water Products' days of sales outstanding (DSO) have experienced fluctuations over the analyzed period from September 30, 2020, to September 30, 2024. Specifically, the DSO increased from 68.45 days in 2020 to a peak of 73.56 days in 2021, reflecting a longer collection period during that year. Subsequently, the DSO decreased to 68.09 days in 2022, indicating an improvement in receivables collection efficiency. The downward trend continued into 2023, with DSO further reducing to 63.46 days, and persisted into 2024, reaching 59.83 days.
Overall, the trend suggests a consistent enhancement in the company's accounts receivable management, with a notable reduction of approximately 8.62 days in DSO from 2021 to 2024. This improvement could reflect more effective credit policies, better collection processes, or changes in customer payment behaviors. The decreasing DSO signifies a shorter period to convert receivables into cash, which generally benefits the company's liquidity position.
Peer comparison
Sep 30, 2024