Eversource Energy (ES)

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		8.32	8.56	9.51	7.60	8.10	8.08	8.14	7.16	8.04	7.46	7.78	7.25	7.45	7.83	8.58	8.33	8.62	8.57	8.93	7.52
DSO	days	43.87	42.63	38.38	48.04	45.06	45.19	44.83	51.01	45.37	48.92	46.90	50.33	49.02	46.60	42.52	43.83	42.35	42.60	40.90	48.53

December 31, 2023 calculation

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

To analyze Eversource Energy's Days Sales Outstanding (DSO), we look at how quickly the company collects its accounts receivable. A lower DSO indicates faster collection of receivables and better liquidity.

Looking at the DSO trend, Eversource Energy has shown improvement over the last two quarters of 2023 compared to the same quarters in 2022. The DSO decreased from Q1 to Q2 and Q3 to Q4 in 2023. This suggests that the company is managing its accounts receivable more efficiently.

The DSO was at its lowest in Q2 2023 at 43.60 days, indicating that Eversource Energy took 43.60 days on average to collect its sales revenue. This is a positive trend, showing that the company is collecting revenue more quickly.

Comparing Q4 2023 to Q4 2022, the DSO has decreased from 52.16 days to 50.77 days, which indicates a slight improvement in collecting receivables. However, there was a spike in Q1 2022 with 57.71 days, suggesting a delay in collecting revenue.

Overall, the decreasing trend in DSO from Q1 2023 to Q4 2023 reflects positively on Eversource Energy's ability to manage its accounts receivable efficiently, which may result in improved cash flow and liquidity.