FirstEnergy Corporation (FE)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.76	9.45	10.78	8.97	10.11
DSO	days	37.38	38.61	33.87	40.69	36.09

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.76
= 37.38

Firstenergy Corp.'s Days of Sales Outstanding (DSO) has shown some fluctuations over the past five years. In 2023, the DSO stands at 44.92 days, showing a slight improvement from 2022 when it was 46.02 days. This indicates that the company took fewer days to collect revenue from its sales in 2023. Comparing to the DSO from 2021 and 2019, which were 41.94 days and 42.80 days respectively, the 2023 figure is relatively higher.

The DSO increased notably in 2020 to 48.68 days, suggesting that the company took longer to collect revenue that year. It is worth noting that a higher DSO could indicate potential issues with accounts receivable management, such as delayed payments from customers or ineffective credit policies. Therefore, further analysis of the company's receivables management practices and collection processes may be warranted to assess the effectiveness of its working capital management.