FirstEnergy Corporation (FE)

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		9.76	9.91	10.87	10.09	9.45	10.10	—	—	10.78	—	—	—	8.97	—	—	—	—	—	—	—
DSO	days	37.38	36.84	33.59	36.18	38.61	36.13	—	—	33.87	—	—	—	40.69	—	—	—	—	—	—	—

December 31, 2023 calculation

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

Days Sales Outstanding (DSO) is a key metric used to assess how efficiently a company is managing its accounts receivable. DSO measures the average number of days it takes for a company to collect payment after a sale is made. In the case of Firstenergy Corp., we observe fluctuations in DSO over the past eight quarters as follows:

- Q4 2023: 44.92 days
- Q3 2023: 44.50 days
- Q2 2023: 41.37 days
- Q1 2023: 43.57 days
- Q4 2022: 46.02 days
- Q3 2022: 44.20 days
- Q2 2022: 43.71 days
- Q1 2022: 43.95 days

The trend in Firstenergy Corp.'s DSO indicates some variability but generally remains around the 43-45 days range, with Q2 2023 showing a noticeable decrease to 41.37 days. A lower DSO suggests that the company is collecting payments more quickly, which can indicate efficient accounts receivable management. Conversely, a higher DSO may signal challenges in collecting payments promptly, potentially leading to cash flow constraints.

It is important to further investigate the reasons behind these fluctuations in DSO to understand if they are driven by changes in sales terms, customer payment behavior, industry trends, or internal credit and collection policies. This analysis can provide valuable insights into Firstenergy Corp.'s working capital management and overall financial health.