Myriad Genetics Inc (MYGN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.52 | 6.65 | 9.27 | 8.84 | 6.06 | |
| DSO | days | 55.97 | 54.92 | 39.39 | 41.28 | 60.22 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.52
= 55.97
The Days of Sales Outstanding (DSO) ratio measures the average number of days a company takes to collect revenue after making a sale. A lower DSO indicates quicker collection of accounts receivable, which is generally favorable as it reflects efficient cash flow management.
Analyzing the DSO trend for Myriad Genetics, Inc. over the past five years, we observe fluctuations in the collection period. In 2019, the DSO was relatively high at 59.44 days, indicating a slower collection process. However, there was an improvement by 2021, with the DSO decreasing to 48.25 days, suggesting a more efficient cash conversion cycle.
By the end of 2023, the DSO had increased slightly to 55.39 days. While this uptick could indicate a lengthening in the collection period, it is essential to compare this figure with industry benchmarks to evaluate its competitiveness.
Overall, the DSO analysis suggests that Myriad Genetics has made progress in enhancing its collections process since 2019. However, sustaining or further reducing the DSO in the future could lead to improved liquidity and working capital efficiency for the company.
Peer comparison
Dec 31, 2023