H2O America (HTO)

Days of sales outstanding (DSO)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		5.18	5.65	5.25	4.46	5.25	6.09	5.31	4.89	5.63	6.21	5.62	4.72	5.24	5.82	5.48	4.83	5.47	6.06	5.48	4.87
DSO	days	70.52	64.63	69.51	81.77	69.51	59.96	68.76	74.59	64.81	58.78	64.95	77.29	69.68	62.70	66.66	75.51	66.67	60.23	66.66	74.91

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.18
= 70.52

The analysis of H2O America’s Days of Sales Outstanding (DSO) over the specified period indicates fluctuations in the company’s collection efficiency. From September 30, 2020, to June 30, 2021, the DSO decreased from approximately 74.91 days to a low of 60.23 days, reflecting an improvement in receivables collection period. This downward trend suggests enhanced effectiveness in converting sales into cash during this interval.

Subsequently, the DSO exhibited variability, rising again to around 77.29 days on September 30, 2022, before decreasing to approximately 64.95 days by December 31, 2022. The pattern indicates periodic fluctuations, which may correspond to seasonal factors, changes in credit policies, or customer payment behaviors.

Between early 2023 and mid-2024, the DSO continued to decline, reaching a low of about 58.78 days on March 31, 2023, indicating improved collection efficiency during this timeframe. However, instances of increases are again observed, notably reaching approximately 81.77 days on September 30, 2024, reflecting a significant extension in the collection period.

Overall, the DSO demonstrates variability but indicates a tendency toward periods of both improvement and deterioration in accounts receivable management. The relatively wide range, spanning from roughly 58.78 days to 81.77 days, suggests fluctuating credit collection practices and potential impacts on cash flow management. Consistent monitoring and strategic adjustments may be required to stabilize the collection period and optimize working capital efficiency.