American States Water Company (AWR)

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		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	10.07	9.53	10.53	13.38
DSO	days	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	36.26	38.30	34.68	27.27

December 31, 2023 calculation

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

Days Sales Outstanding (DSO) is a key ratio that indicates the average number of days it takes for a company to collect payment from its customers after a sale is made. A lower DSO suggests that the company's accounts receivable management is efficient, while a higher DSO may indicate issues with collections or credit policies.

For American States Water Co., the trend in DSO over the past eight quarters shows some fluctuations. In Q4 2023, the DSO was 69.52 days, slightly lower than the previous quarter's 70.58 days. Despite this improvement, the DSO remains higher compared to Q2 and Q1 of 2023, where it was 63.17 days and 59.17 days, respectively. This indicates that the company took longer to collect payments in the most recent quarter.

Comparing the latest DSO to the same quarter in the previous year, there has been an increase from Q4 2022's DSO of 66.80 days. This upward trend suggests that American States Water Co. may be facing challenges in timely collections from customers or changes in its sales policies.

It is essential for the company to closely monitor its DSO and ensure that it maintains an optimal balance between efficient collections and maintaining customer relationships. A rising DSO could potentially impact the company's cash flow and profitability if not managed effectively.