Exelon Corporation (EXC)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.44	5.33	3.50	3.50	7.19
DSO	days	56.65	68.47	104.30	104.22	50.80

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.44
= 56.65

Days Sales Outstanding (DSO) is a key ratio used to evaluate how efficient a company is at collecting accounts receivable from its customers. A lower DSO indicates that a company is collecting payments more quickly, which is generally seen as favorable.

Analyzing Exelon Corp.'s DSO over the past five years, we observe fluctuations in the metric. In 2023, the DSO stood at 56.46 days, reflecting an improvement compared to the previous year. This suggests that Exelon was able to collect its receivables more efficiently in 2023.

However, in 2022, the DSO increased to 68.13 days, indicating a deterioration in the collection of receivables compared to 2021 when the DSO was at 51.48 days. This suggests that Exelon faced challenges in collecting payments promptly in 2022.

Looking further back, in 2021, the DSO was lower at 51.48 days, showing that Exelon was more efficient in collecting payments from customers compared to 2020 when the DSO was 51.14 days. In 2019, the DSO was relatively higher at 65.45 days, indicating that Exelon took longer to collect its accounts receivable that year.

Overall, fluctuations in Exelon Corp.'s DSO over the past five years suggest varying levels of efficiency in collecting payments from customers. It is essential for the company to maintain a balance and strive for lower DSO figures to enhance its liquidity and cash flow management.