Edison International (EIX)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.92	7.37	6.80	5.59	15.67
DSO	days	61.62	49.51	53.68	65.24	23.29

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.92
= 61.62

Edison International's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment after making a sale. The trend in DSO over the past five years indicates fluctuations in the efficiency of accounts receivable management.

In 2023, the DSO increased to 61.62 days from 49.51 days in 2022, suggesting a slower collection of sales proceeds. This may indicate challenges in collecting payments from customers or a shift in sales mix towards longer credit terms.

Comparing 2023 to 2021 and 2020, where DSO was 53.68 days and 65.24 days respectively, the current DSO falls in between these figures. This could imply a somewhat improved collection efficiency compared to the prior two years.

In contrast, a notable decrease in DSO was observed in 2019 (41.21 days), indicating a significant improvement in the company's ability to collect receivables promptly. This could be attributed to more effective credit control measures or favorable payment terms negotiated with customers.

Overall, Edison International's DSO trend reflects varying levels of effectiveness in managing accounts receivable over the past five years, with the company experiencing fluctuations in its collection period. Further analysis and monitoring of DSO along with other financial metrics are recommended to assess the company's overall financial health and operational efficiency.