Black Hills Corporation (BKH)

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		4.07	7.19	6.72	4.50	6.32	8.08	7.40	4.08	4.85	6.64	6.12	4.02	5.74	7.13	6.81	4.58	5.95	6.97	6.75	4.88
DSO	days	89.68	50.77	54.34	81.11	57.74	45.15	49.34	89.47	75.21	54.96	59.62	90.78	63.61	51.21	53.60	79.70	61.39	52.33	54.08	74.81

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.07
= 89.68

Days of Sales Outstanding (DSO) is a key financial ratio that indicates how long it takes for a company to collect its accounts receivable. A lower DSO value implies that the company is efficient in collecting payments from customers, while a higher DSO value may indicate potential issues with collections.

Analyzing the DSO trend of Black Hills Corporation from March 31, 2020, to December 31, 2024, reveals fluctuations in the collection period. The DSO ranged from a low of 45.15 days on September 30, 2023, to a high of 90.78 days on March 31, 2022. The DSO values have shown some variability over the years, indicating changes in the company's collection efficiency.

Overall, the company's DSO has exhibited fluctuations, with periods of lower and higher collection days. It is essential for Black Hills Corporation to continue monitoring its DSO trend to ensure efficient accounts receivable management and optimize cash flow operations.