California Water Service Group (CWT)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.63	7.37	6.69	7.67	5.25
DSO	days	55.06	49.54	54.56	47.56	69.53

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.63
= 55.06

The days of sales outstanding (DSO) ratio for California Water Service Group has shown fluctuations over the past five years. In 2019, the DSO was at its lowest at 60.96 days, indicating a relatively efficient collection of accounts receivable. However, there was an increase in DSO in the following years, reaching 89.45 days in 2020 and 87.96 days in 2021, suggesting a potential slowdown in collecting receivables.

The DSO decreased to 75.89 days in 2022, showing some improvement in receivables management. In the most recent year, 2023, the ratio further decreased to 81.31 days. This suggests that the company was able to collect its accounts receivable more quickly compared to the prior year, although the DSO remains higher than the levels seen in 2019.

Overall, monitoring trends in DSO is important for evaluating the efficiency of California Water Service Group's collections process and managing liquidity. The company may want to focus on maintaining a balance between efficient collections and customer relationships to ensure timely cash inflows.