American Electric Power Co Inc (AEP)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.49 | 6.82 | 6.64 | 7.41 | 6.55 | |
| DSO | days | 56.21 | 53.51 | 54.97 | 49.29 | 55.70 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.49
= 56.21
The days of sales outstanding (DSO) for American Electric Power Co Inc have shown a slight fluctuation over the past five years. Starting at 55.70 days on December 31, 2020, the DSO decreased to 49.29 days on December 31, 2021, indicating an improvement in the company's ability to collect accounts receivable in a timely manner. However, by December 31, 2022, the DSO increased to 54.97 days, suggesting a slower collection process compared to the previous year.
In the following years, the trend continued with the DSO slightly decreasing to 53.51 days on December 31, 2023 before rising again to 56.21 days by December 31, 2024. The increase in DSO from 2023 to 2024 indicates a potential delay in receiving payments from customers, which could impact the company's cash flow and overall liquidity.
Overall, American Electric Power Co Inc should monitor its DSO closely to ensure efficient management of accounts receivable and timely collection of sales revenue to maintain healthy cash flow levels and financial stability.
Peer comparison
Dec 31, 2024