Constellation Energy Corp (CEG)
Days of sales outstanding (DSO)
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
---|---|---|---|---|
Receivables turnover | 8.09 | 7.10 | 81.53 | |
DSO | days | 45.12 | 51.39 | 4.48 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.09
= 45.12
To analyze Constellation Energy Corporation's days of sales outstanding (DSO) over the past four years, we observe a fluctuating trend in the efficiency of their accounts receivable management.
In December 2020, the DSO was at 37.39 days, indicating that on average, the company collected its accounts receivable in approximately 37 days. This suggested a relatively efficient collection process. However, by December 2021, the DSO increased to 44.97 days, showing a deterioration in receivables turnover efficiency.
The trend continued in December 2022, where the DSO further increased to 49.52 days, signifying a slower rate of collecting receivables compared to the previous year.
In December 2023, the DSO decreased to 41.76 days, suggesting a slight improvement in collecting accounts receivable compared to the prior year but still higher than the levels observed in December 2020.
Overall, the analysis indicates that Constellation Energy Corporation experienced fluctuations in their DSO over the past four years, with periods of both improvement and deterioration in their accounts receivable turnover efficiency. Management may need to further assess and potentially optimize their credit and collection policies to improve cash flow and liquidity.
Peer comparison
Dec 31, 2023