The AES Corporation (AES)
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 | 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 | 6.33 | 6.91 | 6.89 | 6.81 | |
| DSO | days | 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 | 57.67 | 52.85 | 53.00 | 53.62 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.44
= 43.25
To analyze AES Corp.'s Days Sales Outstanding (DSO), we calculate the average DSO over the past eight quarters. The average DSO for AES Corp. is calculated as follows:
(40.91 + 49.34 + 48.19 + 52.18 + 52.04 + 52.91 + 52.09 + 48.94) / 8 = 49.19 days
The average DSO for AES Corp. over the past eight quarters is 49.19 days. This indicates that on average, it takes the company around 49 days to collect its accounts receivable. A lower DSO is generally favorable as it signifies that the company is efficient in collecting payments from customers, which can improve cash flow management. On the other hand, a higher DSO may suggest potential issues with the company's credit policies or challenges in collecting payments promptly. In the case of AES Corp., the fluctuation in DSO over the quarters should be further investigated to understand any underlying trends or anomalies impacting the company's accounts receivable management.