American States Water Company (AWR)

Days of sales outstanding (DSO)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Receivables turnover 8.99 12.41 14.52 19.71 10.30 18.25 21.39 25.52 9.68 15.12 17.81 20.96 8.07 15.17 16.97 22.47 8.86 14.08 15.66 17.80
DSO days 40.58 29.42 25.13 18.52 35.43 20.00 17.06 14.30 37.70 24.13 20.50 17.42 45.22 24.05 21.51 16.24 41.19 25.93 23.30 20.51

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.99
= 40.58

The Days of Sales Outstanding (DSO) is a financial metric that indicates the average number of days it takes for a company to collect revenue after a sale has been made. In the case of American States Water Company, the DSO has shown some fluctuations over the periods indicated in the data provided.

From March 31, 2020, to December 31, 2024, the DSO for American States Water Company ranged from as low as 14.30 days to as high as 45.22 days. During this period, there were noticeable fluctuations in the DSO, which can be an indication of changes in the company's credit policies, efficiency in collections, or the overall economic conditions impacting the payment behavior of its customers.

Overall, a decreasing trend in DSO, such as the decline observed from December 31, 2021, to March 31, 2024, indicates that the company is collecting receivables more quickly, which is a positive sign as it can improve cash flow and liquidity. On the other hand, an increasing trend in DSO, as seen from December 31, 2021, to December 31, 2024, may suggest potential issues with collections efficiency or changes in customer payment behavior that could require management attention.

It is essential for American States Water Company to monitor its DSO closely and analyze the factors contributing to any fluctuations to ensure timely and efficient collections, maintain healthy cash flow, and mitigate potential credit risks.