Green Plains Renewable Energy Inc (GPRE)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		25.91	34.59	33.33	23.39	34.21
DSO	days	14.09	10.55	10.95	15.61	10.67

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 25.91
= 14.09

To analyze Green Plains Renewable Energy Inc's days of sales outstanding (DSO) based on the provided data:

1. DSO is a measure that indicates the average number of days it takes the company to collect revenue after making a sale.

2. The trend of Green Plains' DSO over the years shows fluctuation:
- In December 31, 2020, the DSO was at 10.67 days, indicating a relatively efficient collection of sales revenue.
- By December 31, 2021, the DSO increased to 15.61 days, suggesting a slower collection of sales, potentially indicating issues with accounts receivable management.
- There was a slight improvement reported by December 31, 2022, with the DSO at 10.95 days.
- The DSO further decreased to 10.55 days by December 31, 2023, indicating a potentially more efficient collection process.
- However, by December 31, 2024, the DSO increased to 14.09 days, pointing to a potential slowdown in the collection of sales revenue.

3. In summary, Green Plains Renewable Energy Inc's DSO has shown variability over the years, ranging from a low of 10.55 days to a high of 15.61 days. It would be essential for the company to closely monitor this metric to ensure efficient accounts receivable management and timely collection of sales revenue to maintain financial health and liquidity.