American Water Works (AWK)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.80 | 5.23 | 9.01 | 7.17 | 7.74 | |
| DSO | days | 62.93 | 69.78 | 40.50 | 50.93 | 47.17 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.80
= 62.93
The days of sales outstanding (DSO) for American Water Works Co. Inc. have fluctuated over the last five years. In 2023, the DSO was 55.26 days, representing the number of days it takes for the company to collect its accounts receivable, which is an increase compared to 2022 when it was 58.62 days. However, in 2021, the DSO was 48.20 days, showing an improvement from the previous year. In 2020, the DSO was 50.93 days, slightly higher than in 2019 when it was 47.12 days.
Overall, the trend in DSO indicates some variability in the company's ability to collect receivables efficiently. It is essential for the company to manage its accounts receivable effectively to optimize cash flow and working capital. Analyzing the reasons behind these fluctuations and implementing strategies to shorten DSO can contribute to improving the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023