DTE Energy Company (DTE)

Days of Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is able to collect payments from its customers more quickly, which is generally seen as a positive sign.

In the case of DTE Energy Co., the trend in DSO over the past five years has varied. In 2019, the DSO was relatively high at 54.37 days, indicating that the company took an average of 54.37 days to collect its accounts receivable. This could suggest potential inefficiencies in the company's collections process.

However, in the subsequent years, there was an improvement in the DSO. In 2020, the DSO decreased to 53.71 days, and further dropped to 44.64 days in 2021. This indicates that DTE Energy Co. was able to collect payments from its customers more efficiently during these years.

The most significant improvement was seen in 2022 when the DSO decreased to 41.42 days, indicating a further enhancement in the company's collections process. However, in 2023, there was a slight increase in DSO to 51.18 days, which could suggest a potential slowdown in collections efficiency compared to the previous year.

Overall, DTE Energy Co. has shown improvements in their DSO over the past few years, with a couple of fluctuations noted. Analyzing the DSO trend can provide insights into the company's accounts receivable management and operational efficiency in collecting payments from customers.

Peer comparison

Dec 31, 2023