American Electric Power Company Inc (AEP)

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		6.82	6.44	7.06	7.35	6.64	6.66	6.62	7.74	7.41	6.39	6.26	6.88	6.55	7.23	7.61	7.69	8.07	7.52	8.10	7.75
DSO	days	53.51	56.69	51.68	49.65	54.97	54.78	55.13	47.16	49.29	57.10	58.35	53.05	55.70	50.46	47.94	47.47	45.21	48.54	45.04	47.08

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.82
= 53.51

To analyze American Electric Power Company Inc.'s Days of Sales Outstanding (DSO) using the provided data, it is evident that there have been fluctuations in the company's collection period over the past eight quarters. In Q4 2023, the DSO stood at 47.06 days, which was slightly lower compared to the preceding quarter at 48.54 days.

It is notable that the DSO has generally ranged between 41.33 days and 48.54 days over the evaluated periods. However, in Q2 2023, there was a significant decrease in DSO to 44.73 days, indicating a more efficient collection period.

These fluctuations in DSO can provide insights into the company's credit policies, collection efficiency, and overall management of accounts receivable. A decreasing trend in DSO suggests that the company is collecting its receivables more quickly, which could potentially improve its cash flow and liquidity position. Conversely, an increasing trend in DSO may indicate potential issues with customer payments and may require closer monitoring and management.

Overall, further analysis and comparison with industry benchmarks would be beneficial in understanding the effectiveness of American Electric Power Company Inc.'s accounts receivable management and its impact on the company's financial performance.