CenterPoint Energy Inc (CNP)

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		6.59	7.86	9.81	7.30	5.57	8.20	7.96	6.23	6.94	8.46	7.97	6.49	5.87	7.69	8.54	7.75	4.52	5.49	5.68	5.18
DSO	days	55.40	46.45	37.22	50.00	65.51	44.50	45.86	58.58	52.62	43.17	45.78	56.26	62.15	47.44	42.72	47.09	80.74	66.48	64.21	70.48

December 31, 2023 calculation

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

To analyze Centerpoint Energy Inc.'s Days of Sales Outstanding (DSO), we calculate the average DSO for each quarter over the eight quarters provided.

The average DSO for Centerpoint Energy Inc. over the eight quarters is approximately 49.36 days. The company's DSO has fluctuated over this period, ranging from a low of 37.22 days in Q2 2023 to a high of 65.51 days in Q4 2022.

A decreasing trend in DSO, such as the significant drop from 65.51 days in Q4 2022 to 37.22 days in Q2 2023, indicates that the company is collecting its accounts receivable more quickly, which may be a positive sign of efficiency in managing its cash flow.

On the other hand, an increasing trend, as seen in Q4 2023 with 55.40 days, suggests that Centerpoint Energy Inc. is taking longer to collect its accounts receivable, potentially indicating issues with credit policies or slower customer payments.

Overall, the analysis of Centerpoint Energy Inc.'s DSO suggests that the company has experienced fluctuations in its collection efficiency over the past eight quarters, and further investigation into the reasons behind these variations may be warranted.