Kinder Morgan Inc (KMI)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.66	10.20	10.05	8.73	9.38
DSO	days	37.80	35.78	36.32	41.80	38.91

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.66
= 37.80

Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which is generally seen as a positive sign of efficient cash flow management.

Analyzing Kinder Morgan Inc's DSO over the past five years, we observe a fluctuating trend. In 2023, the DSO stands at 37.80 days, showing a slight increase from the previous year. This increase suggests a potential delay in collecting payments compared to 2022.

Compared to 2021 and 2019, where DSO was relatively stable, the DSO in 2023 seems to be slightly elevated. However, when compared to 2020, when the DSO was relatively higher at 40.34 days, the current DSO indicates an improvement in collecting payments more efficiently.

Overall, while the DSO for Kinder Morgan Inc has varied over the past five years, monitoring this ratio can provide insights into the company's accounts receivable management and how effectively it is converting sales into cash.