Peabody Energy Corp (BTU)

Peabody Energy Corp's Days of Sales Outstanding (DSO) metric measures the average number of days it takes for the company to collect payments from its customers after making sales. A lower DSO indicates better efficiency in collecting receivables, while a higher DSO may suggest potential issues with customer credit, collection processes, or sales terms.

The trend analysis of Peabody Energy's DSO over the past five years shows a fluctuating pattern. In 2023, the DSO improved significantly to 23.78 days from 30.50 days in 2022, indicating a more efficient collections process compared to the previous year. This reduction could be attributed to improved credit control, enhanced collection procedures, or better customer payment behavior.

Comparing to 2021, where the DSO was 33.77 days, the current DSO in 2023 reflects further progress in working capital management. The company has managed to decrease the average collection period, which may positively impact cash flows and liquidity.

In contrast to the recent improvement, Peabody Energy's DSO in 2020 and 2019 was relatively lower at 22.92 days and 22.35 days, respectively. This suggests that the company was previously able to collect payments from customers more quickly compared to the recent years.

Overall, while Peabody Energy's DSO has shown fluctuations over the past five years, the recent reduction in DSO in 2023 indicates a positive trend towards more efficient accounts receivable management. As DSO is a critical indicator of liquidity and cash flow management, maintaining a downward trend in DSO could be beneficial for the company's financial health and operating efficiency.

Peer comparison

Dec 31, 2023