Evergy Inc. Common Stock (EVRG)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		12.58	11.15	13.62	9.55	22.53
DSO	days	29.01	32.74	26.81	38.24	16.20

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.58
= 29.01

Evergy Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payments from its customers. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable as it signifies effective accounts receivable management.

Analyzing Evergy Inc's DSO over the past five years, we observe fluctuations in the metric. In 2023, the DSO decreased to 17.79 days from 20.22 days in 2022, which indicates an improvement in the efficiency of collecting receivables. The DSO was at its lowest in 2021 at 16.31 days, showcasing strong receivables management during that period.

Conversely, in 2020 and 2019, the DSO increased to 25.02 days and 22.26 days, respectively, suggesting a slower collection of payments during those years. It is important to note that a higher DSO could signify potential liquidity issues or difficulties in collecting outstanding receivables promptly.

Overall, monitoring Evergy Inc's DSO trend provides insights into the company's ability to manage its accounts receivable efficiently and promptly collect revenues, which is vital for maintaining healthy cash flows and financial stability.