Eversource Energy (ES)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		8.32	8.10	8.04	7.45	8.62
DSO	days	43.87	45.06	45.37	49.02	42.35

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.32
= 43.87

To analyze the days of sales outstanding (DSO) for Eversource Energy, we look at the trend over the past five years:

1. In 2023, the DSO was 50.77 days, which decreased from 52.16 days in 2022, indicating an improvement in the collection period for accounts receivable.

2. The DSO for 2022 was lower than 2021, which suggests a better efficiency in collecting receivables compared to the previous year.

3. The DSO increased in 2021 compared to 2020, indicating a longer period to collect receivables and potentially signaling a challenge in managing accounts receivable.

4. In 2020, the DSO was 58.57 days, the highest in the past five years, which could be a concern as it indicates a longer time taken to convert sales into cash.

5. The DSO in 2019 was 50.10 days, slightly lower than 2023, showing a relatively stable collection period.

Overall, the trend in DSO for Eversource Energy fluctuated over the years, with improvements seen in recent years, but a spike in 2020. Monitoring and managing DSO effectively is crucial for maintaining liquidity and cash flow in the company.