Kinder Morgan Inc (KMI)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		10.03	9.66	10.20	10.05	8.73
DSO	days	36.40	37.80	35.78	36.32	41.80

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.03
= 36.40

The Days Sales Outstanding (DSO) for Kinder Morgan Inc has shown a decreasing trend over the past few years. As of December 31, 2020, the DSO stood at 41.80 days, and it improved to 36.32 days by December 31, 2021. This trend continued with further reductions to 35.78 days by December 31, 2022, and 36.40 days by December 31, 2024. However, there was a slight increase to 37.80 days by December 31, 2023.

Overall, the decreasing trend in DSO indicates that Kinder Morgan Inc has been able to collect its accounts receivable more efficiently over the years, reflecting a positive aspect of the company's financial management in terms of managing its credit sales and collection processes. The slight increase in 2023 suggests a temporary deviation from the improving trend, which may warrant further investigation to understand the underlying reasons for this fluctuation.