California Water Service Group (CWT)

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		6.63	5.05	5.99	7.88	7.37	5.50	6.06	7.51	6.70	5.76	6.46	8.23	7.67	5.72	6.55	8.23	5.25	5.92	6.56	8.67
DSO	days	55.06	72.24	60.92	46.33	49.54	66.41	60.25	48.60	54.50	63.40	56.50	44.33	47.56	63.76	55.70	44.35	69.52	61.65	55.66	42.10

December 31, 2023 calculation

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

Days of Sales Outstanding (DSO) is a crucial metric used to assess the efficiency of a company in collecting its accounts receivable. A lower DSO indicates that the company is able to collect revenue more quickly, which is generally considered favorable.

Analyzing California Water Service Group's DSO over the past eight quarters, we observe fluctuations in the trend. In Q4 2023, the DSO stands at 81.31 days, showing an improvement from the previous quarter but still higher compared to Q1 and Q4 2022. This suggests that the company is collecting its receivables at a slightly faster pace than in the previous period.

Looking at Q3 and Q2 2023, the DSO increased to 93.10 days and 86.08 days respectively, indicating a slower collection period. This could be a cause for concern as it may imply potential risks with outstanding payments or credit terms.

Comparing the recent quarters to the same periods in 2022, there is a mixed performance. For instance, in Q1 2023, the DSO of 66.74 days is notably lower than in the same quarter in 2022, indicating an improvement in receivables management.

Overall, while there have been fluctuations in California Water Service Group's DSO, a consistent downward trend would be preferable to ensure efficient cash flow management and timely collection of outstanding amounts. Regular monitoring and analysis of DSO can help the company optimize its accounts receivable processes and enhance financial performance in the long term.