The AES Corporation (AES)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.09 | 6.58 | 8.25 | 7.78 | 8.44 | 7.40 | 7.57 | 7.00 | 6.62 | 6.90 | 7.01 | 7.46 | 6.95 | 7.81 | 7.60 | 7.42 | 6.72 | 6.79 | 6.80 | 6.83 | |
| DSO | days | 51.46 | 55.50 | 44.26 | 46.93 | 43.25 | 49.34 | 48.19 | 52.18 | 55.14 | 52.91 | 52.09 | 48.94 | 52.48 | 46.75 | 48.04 | 49.19 | 54.33 | 53.77 | 53.70 | 53.44 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.09
= 51.46
The Days of Sales Outstanding (DSO) for The AES Corporation shows the number of days it takes for the company to collect its accounts receivable from its customers. A lower DSO indicates faster collection of receivables, which is generally preferred as it signifies efficient credit and collection management.
Analyzing the DSO trend of The AES Corporation from March 31, 2020, to December 31, 2024, we observe fluctuations in the values. The DSO values range from a low of 43.25 days on December 31, 2023, to a high of 55.50 days on September 30, 2024. This variability may indicate changes in the company's credit policies, customer payment behavior, or economic conditions impacting collections.
It is noteworthy that there is a general downward trend in DSO from March 31, 2021 (49.19 days) to December 31, 2023 (43.25 days), indicating an improvement in the company's efficiency in collecting accounts receivable during this period. However, the DSO increased again to 51.46 days on December 31, 2024, suggesting a potential slowdown in collections, which may warrant further investigation.
Overall, a detailed analysis of the reasons behind the fluctuations in DSO, along with other financial indicators, is essential to assess The AES Corporation's overall financial health and effectiveness in managing its accounts receivable.