American Electric Power Co Inc (AEP)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Receivables turnover		6.49	6.73	7.09	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
DSO	days	56.22	54.23	51.50	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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.49
= 56.22

The Days Sales Outstanding (DSO) for American Electric Power Co Inc has shown varying trends over the years. Starting from 45.21 days on December 31, 2019, the DSO increased gradually, reaching a peak of 58.35 days on June 30, 2021. Since then, there has been some fluctuation in the DSO figures, with values hovering around the mid-50s range. The company seemed to have effectively managed its receivables as the DSO dropped to 49.29 days on December 31, 2021.

However, there was a subsequent increase to 56.22 days by December 31, 2024, indicating a potential challenge in collecting outstanding receivables efficiently. It is important for American Electric Power Co Inc to closely monitor and manage its accounts receivable turnover to ensure optimal cash flow and liquidity. Further analysis of the underlying reasons for the fluctuations in DSO may help the company improve its receivables management practices.