Allete Inc (ALE)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.73 | 11.68 | 9.40 | 9.56 | 8.80 | |
| DSO | days | 41.83 | 31.26 | 38.83 | 38.17 | 41.46 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.73
= 41.83
The Days Sales Outstanding (DSO) ratio for Allete Inc has shown fluctuations over the past five years. Starting at 41.46 days on December 31, 2020, DSO decreased to 38.17 days on December 31, 2021 but then increased slightly to 38.83 days by December 31, 2022. However, there was a significant improvement by December 31, 2023, with DSO dropping to 31.26 days. This was followed by a slight increase to 41.83 days on December 31, 2024.
Overall, the trend in DSO indicates that Allete Inc improved its accounts receivable collection efficiency significantly by the end of 2023 but faced challenges in managing receivables by the end of 2024. Further analysis and context would be needed to understand the specific factors driving these changes and their implications for the company's financial performance.
Peer comparison
Dec 31, 2024