The AES Corporation (AES)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.44 | 6.62 | 6.95 | 6.72 | 6.33 | |
| DSO | days | 43.25 | 55.14 | 52.48 | 54.33 | 57.67 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.44
= 43.25
The days of sales outstanding (DSO) trend for AES Corp. over the past five years indicates a fluctuating pattern. In 2023, the DSO decreased significantly to 40.91 days from 52.04 days in 2022. This improvement suggests that the company was able to collect its accounts receivable more efficiently compared to the prior year.
However, compared to 2021 and 2020, the DSO in 2023 is still lower than those years, indicating a positive trend in managing accounts receivable. In 2021, the DSO was 46.46 days, and in 2020, it was 49.12 days. The decreasing trend from 2020 to 2023 suggests that the company has been improving its collection process over these years.
Furthermore, the DSO in 2023 is notably lower than the DSO in 2019, which stood at 52.98 days. This indicates a significant enhancement in the company's accounts receivable management efficiency over the past five years.
Overall, the decreasing trend in DSO from 2019 to 2023 signals that AES Corp. has been successful in collecting its sales revenues more promptly, potentially indicating better liquidity and operational efficiency in managing its accounts receivable.