Allete Inc (ALE)

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		11.68	15.91	15.52	14.56	9.40	12.81	12.92	12.36	9.56	12.17	12.25	10.54	8.80	12.54	13.38	12.02	10.65	16.27	16.52	15.14
DSO	days	31.26	22.94	23.51	25.06	38.83	28.49	28.26	29.53	38.17	30.00	29.79	34.62	41.46	29.12	27.29	30.36	34.28	22.44	22.09	24.10

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.68
= 31.26

To analyze Allete, Inc.'s days of sales outstanding (DSO), we look at the trend over the past eight quarters. DSO represents the average number of days it takes for a company to collect revenue after a sale is made.

The DSO for Allete, Inc. has shown some fluctuations over the quarters. In Q3 2023, the DSO decreased to 22.94 days from 26.64 days in Q4 2023, indicating that the company was able to collect revenue more efficiently during this period. This improvement suggests effective management of accounts receivable.

Comparing to the same quarter in the previous year, Q3 2022 had a DSO of 28.49 days, which also indicates an improvement in collection efficiency over the year.

Overall, Allete, Inc. has shown a trend of decreasing DSO, which is generally a positive sign as it suggests the company is managing its accounts receivable effectively. However, it is important to continue monitoring DSO to ensure consistent and efficient revenue collection practices.