Marriot Vacations Worldwide (VAC)
Days of sales outstanding (DSO)
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Receivables turnover | — | — | — | — | — | |
DSO | days | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
The Days of Sales Outstanding (DSO) for Marriott Vacations Worldwide Corp have fluctuated over the past five years. In 2023, the DSO stands at 210.65 days, which is higher compared to the prior year's figure of 195.20 days. This indicates that, on average, it takes the company approximately 210.65 days to collect its accounts receivable.
Looking further back, in 2021, the DSO was 218.06 days, showing a slight decrease from 2020 when it was 267.62 days. The significant drop in DSO in 2021 could suggest an improvement in the company's collection process or a more efficient credit management system.
In comparison to 2019, when the DSO was 214.22 days, there has been a slight increase in 2023, indicating a potential slowdown in collecting receivables. It's worth noting that a lower DSO value generally signifies that a company is collecting payments from its customers more quickly, whereas a higher DSO value may indicate issues with collecting outstanding invoices promptly.
Overall, monitoring the trend of DSO over time can provide insights into Marriott Vacations Worldwide Corp's efficiency in managing its accounts receivable and collecting payments from customers. It is essential for the company to closely evaluate and address any fluctuations in DSO to maintain healthy financial liquidity and cash flow.