DTE Energy Company (DTE)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		0.22	0.25	8.81	8.18	6.80
DSO	days	1,638.46	1,475.69	41.42	44.64	53.71

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 0.22
= 1,638.46

Based on the days of sales outstanding (DSO) data for DTE Energy Company, we observe the following trends:

1. In December 2020, the DSO was 53.71 days, indicating that on average, it took the company approximately 53.71 days to collect its accounts receivable.

2. By December 2021, the DSO improved to 44.64 days, suggesting a more efficient accounts receivable collection process compared to the previous year.

3. The trend continued in December 2022, with a further reduction in DSO to 41.42 days, indicating an ongoing focus on managing accounts receivable effectively.

4. However, there is a significant spike in DSO in December 2023, jumping to 1,475.69 days. This abnormal increase could be due to various factors such as changes in credit policies, billing errors, or delays in collections.

5. The DSO remains high in December 2024, at 1,638.46 days, indicating a potential liquidity issue or challenges in collecting outstanding receivables, which warrants further investigation.

In conclusion, while DTE Energy Company has shown improvement in managing its days of sales outstanding in recent years, the significant spike in DSO in 2023 and its persistently high level in 2024 raise concerns about the company's accounts receivable management and liquidity position. Further analysis and monitoring of DSO trends are recommended to address potential underlying issues impacting the company's financial health.