American States Water Company (AWR)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		10.30	9.68	8.07	8.86	10.07
DSO	days	35.43	37.70	45.22	41.19	36.26

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.30
= 35.43

American States Water Co. has shown fluctuations in its days of sales outstanding (DSO) over the past five years. In 2023, the DSO increased to 69.52 days from 66.80 days in 2022, indicating that on average, it takes the company approximately 69.52 days to collect its accounts receivable. This trend follows a pattern of variability in the collection period, as reflected in the DSO figures of 70.34 days in 2021, 62.98 days in 2020, and 56.06 days in 2019.

The increase in DSO from 2022 to 2023 may suggest potential challenges in collecting receivables promptly, which could impact the company's cash flow and liquidity. It is essential for American States Water Co. to monitor and manage its DSO effectively to ensure efficient working capital management and financial stability. Further analysis, including comparison with industry benchmarks and trends, would provide additional insights into the company's receivables management efficiency.