Consolidated Edison Inc (ED)

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		6.09	7.55	9.35	7.85	7.15	7.19	7.10	6.51	7.07	6.87	7.55	6.50	7.12	8.00	9.10	9.22	10.04	9.99	11.14	9.24
DSO	days	59.89	48.35	39.05	46.50	51.05	50.79	51.39	56.08	51.62	53.12	48.34	56.18	51.27	45.64	40.10	39.61	36.34	36.55	32.76	39.49

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.09
= 59.89

To analyze Consolidated Edison, Inc.'s days of sales outstanding (DSO) trend, we observe fluctuations in DSO over eight consecutive quarters. In Q4 2023, the DSO stood at 94.29 days, representing an increase from the previous quarter's 79.23 days. This rise suggests a lengthening of the time it takes for the company to collect revenue from sales.

Comparing Q4 2023 to the same period in the prior year, there was a notable increase in DSO from 75.28 days in Q4 2022 to 94.29 days in Q4 2023. This significant rise may indicate potential challenges in efficient accounts receivable management or changes in customer payment behaviors.

Further historical analysis shows a fluctuating pattern in DSO over the past eight quarters, with peaks and troughs. From Q1 2022 to Q4 2023, there appears to be an overall increasing trend in DSO, implying a potential deterioration in the company's receivables collection efficiency over time.

It is advisable for Consolidated Edison, Inc. to closely monitor its DSO metric and implement strategies to enhance collections processes, such as improving credit policies, increasing collection efforts, or enhancing customer relationships to mitigate the impact of prolonged payment cycles on cash flow and overall financial performance.