Edison International (EIX)

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		5.92	5.06	6.94	7.77	7.37	4.65	6.28	7.74	6.80	5.39	6.47	5.80	5.59	4.43	7.46	9.22	15.67	11.27	16.24	18.04
DSO	days	61.62	72.18	52.56	47.00	49.51	78.52	58.09	47.14	53.68	67.74	56.45	62.90	65.24	82.37	48.90	39.57	23.29	32.39	22.47	20.23

December 31, 2023 calculation

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

To analyze Edison International's Days of Sales Outstanding (DSO) based on the provided data, we observe fluctuations in the DSO metric over the past eight quarters:

1. Q4 2023:
DSO = 61.62 days
2. Q3 2023:
DSO = 72.18 days
3. Q2 2023:
DSO = 52.56 days
4. Q1 2023:
DSO = 47.00 days
5. Q4 2022:
DSO = 49.51 days
6. Q3 2022:
DSO = 78.52 days
7. Q2 2022:
DSO = 58.09 days
8. Q1 2022:
DSO = 47.14 days

The DSO metric reflects the average number of days it takes for a company to collect payment after a sale is made. A lower DSO indicates faster collections and better liquidity management, while a higher DSO suggests potential issues with receivables and cash flow.

From the data, we observe fluctuating DSO values, with a general trend of volatility in collection periods. The DSO ranged from a low of 47.00 days in Q1 2023 to a high of 78.52 days in Q3 2022, indicating variations in the efficiency of the company's accounts receivable management.

It is essential for Edison International to monitor and analyze its DSO closely to ensure efficient cash flow management and timely collections. By addressing factors contributing to higher DSO periods and implementing strategies to improve collections, the company can enhance its liquidity position and overall financial health.