Avista Corporation (AVA)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.40	4.65	4.69	4.64	5.58
DSO	days	67.62	78.58	77.91	78.65	65.36

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.40
= 67.62

Based on the data provided for Avista Corp., the days of sales outstanding (DSO) have fluctuated over the past five years. The DSO for the company was 51.26 days as of December 31, 2023, showing an improvement compared to the DSO of 61.14 days in the previous year, December 31, 2022.

The trend in DSO over the past five years indicates variations in the efficiency of Avista Corp.'s accounts receivable management. The company's ability to collect its accounts receivable has improved since 2022, as reflected by the decrease in DSO. A lower DSO suggests that Avista Corp. is collecting payments from customers more quickly, which could positively impact its cash flow and working capital management.

However, it is essential to closely monitor changes in DSO to ensure that the improvement is sustainable and not influenced by external factors or adjustments in accounting practices. Further analysis of the company's receivables turnover ratio and comparison with industry benchmarks can provide additional insights into the effectiveness of Avista Corp.'s credit policies and collection procedures.