CenterPoint Energy Inc (CNP)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.59	5.57	6.94	5.87	3.90
DSO	days	55.40	65.51	52.62	62.15	93.66

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.59
= 55.40

The days of sales outstanding (DSO) for Centerpoint Energy Inc. have fluctuated over the past five years, indicating changes in the efficiency of the company's accounts receivable management. In 2023, the DSO decreased to 55.40 days from 65.51 days in 2022, suggesting a more efficient collection of receivables compared to the previous year. This improvement may be attributed to better credit policies or more effective collection efforts.

Looking back further, the DSO was 52.62 days in 2021 and 62.15 days in 2020, showing some volatility in the management of accounts receivable during those years. The DSO was relatively stable at 57.59 days in 2019. Overall, a lower DSO indicates that Centerpoint Energy is collecting revenue from its customers more quickly, which can positively impact cash flow and liquidity.

It is important for the company to continue monitoring and managing its DSO to ensure timely collection of receivables and maintain a healthy cash flow position. A declining trend in DSO can indicate improved efficiency and effectiveness in managing working capital, which is crucial for sustainable business operations.