Black Hills Corporation (BKH)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.32 | 4.85 | 5.74 | 5.95 | 6.37 | |
| DSO | days | 57.74 | 75.21 | 63.61 | 61.39 | 57.28 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.32
= 57.74
The Days of Sales Outstanding (DSO) for Black Hills Corporation have fluctuated over the past five years. In 2023, the DSO decreased to 57.74 days from 2022 where it was 75.21 days, indicating an improvement in their accounts receivable collection efficiency. This suggests that the company is collecting its accounts receivable more quickly in 2023 compared to the previous year.
When we compare 2023 to earlier years, the DSO was also lower than in 2021 (63.61 days) and 2020 (61.39 days), but slightly higher than in 2019 (57.28 days). Overall, the trend indicates a relatively stable collection of accounts receivable in recent years with a notable improvement in 2023.
A lower DSO implies the company is collecting payments from its customers more quickly, which can enhance cash flow and liquidity. It also suggests effective credit and collection policies are in place. It would be beneficial for Black Hills Corporation to sustain this positive trend in DSO to maintain healthy financial performance and operational efficiency.
Peer comparison
Dec 31, 2023