Black Hills Corporation (BKH)

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		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	6.37	8.07	7.46	4.54
DSO	days	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	57.28	45.22	48.96	80.44

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.32
= 57.74

Based on the data provided, Black Hills Corporation's Days Sales Outstanding (DSO) has shown fluctuations over the past eight quarters. The DSO metric represents the average number of days it takes for the company to collect payment from its customers after making a sale.

In Q4 2023, the DSO stood at 57.74 days, indicating a higher number of days required for the collection of receivables compared to the previous quarter (Q3 2023) where it was 35.56 days. This increase suggests a potential slowdown in customer payments, which could impact the company's cash flow and working capital management.

Looking at historical trends, the DSO had also peaked in Q4 2022 at 75.21 days, reflecting a significant delay in customer payments at that time. However, improvements were seen in subsequent quarters, with Q3 and Q2 2022 showing lower DSO figures at 41.93 days and 46.32 days, respectively.

Overall, the variability in DSO figures indicates fluctuations in the efficiency of Black Hills Corporation's account receivables management. It would be crucial for the company to closely monitor and potentially streamline its credit and collection processes to ensure timely cash inflows and optimal working capital levels.