Chesapeake Utilities Corporation (CPK)
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 | 8.87 | 13.36 | 14.40 | 10.85 | 10.40 | 12.29 | 12.00 | 9.52 | 7.51 | 9.54 | 10.88 | 8.12 | 7.00 | 7.53 | 8.39 | 7.79 | 6.89 | 10.57 | 8.06 | 5.80 | |
| DSO | days | 41.16 | 27.31 | 25.35 | 33.65 | 35.08 | 29.69 | 30.41 | 38.32 | 48.63 | 38.25 | 33.54 | 44.95 | 52.17 | 48.47 | 43.49 | 46.83 | 52.98 | 34.55 | 45.30 | 62.98 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.87
= 41.16
To analyze Chesapeake Utilities Corp's Days of Sales Outstanding (DSO) trend, we observe fluctuations in DSO over the past eight quarters. DSO measures the average number of days it takes for a company to collect revenue after making a sale.
In Q4 2023, the DSO increased significantly to 58.90 days, compared to the previous quarter's DSO of 35.58 days in Q3 2023. This indicates a prolonged collection period for the company's sales in Q4 2023.
Looking back, the DSO reached its lowest point of 33.97 days in Q2 2023, reflecting an efficient collection process during that period. However, the DSO gradually increased in subsequent quarters.
Comparing the recent DSO figures to the same quarter in the previous year, there has been an improvement in collection efficiency. In Q4 2022, the DSO stood at 50.74 days, which was higher than the latest quarter's DSO. This suggests that Chesapeake Utilities Corp has managed to reduce its DSO over the year, indicating improved cash flow management.
Overall, while there was a notable increase in DSO in the latest quarter, the company has shown progress in managing its collection process effectively compared to the same period in the previous year. Continued monitoring of DSO trends will be crucial to assess the company's ability to optimize its working capital and cash flow.
Peer comparison
Dec 31, 2023