DT Midstream Inc (DTM)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.33 | 6.14 | 6.23 | 7.58 | 5.71 | 6.00 | 6.40 | 7.21 | ||||
| DSO | days | 68.49 | 59.45 | 58.59 | 48.14 | 63.88 | 60.83 | 57.02 | 50.62 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.33
= 68.49
DT Midstream Inc's Days of Sales Outstanding (DSO) measure how quickly the company collects revenue from its customers. A lower DSO indicates faster cash collection, while a higher DSO suggests slower collection and potential liquidity concerns.
Looking at the data provided, we observe a trend of fluctuating DSO values over the eight quarters. In Q4 2023, the DSO increased to 66.90 days from 57.86 days in Q3 2023, indicating a potential delay in collecting receivables compared to the previous quarter. However, this can also be influenced by seasonality or specific factors affecting revenue collection.
Comparing the current DSO to the same quarter in the previous year, the Q4 2023 DSO of 66.90 days is higher than the Q4 2022 DSO of 63.88 days. This suggests a longer collection period for sales in the most recent quarter compared to the same period a year ago.
Overall, it would be important for DT Midstream Inc to further analyze the reasons behind the fluctuations in DSO to ensure efficient cash flow management and address any potential issues in revenue collection. A consistent review of DSO trends can help the company identify areas for improvement in its credit and collection processes and enhance overall financial performance.
Peer comparison
Dec 31, 2023