Kinder Morgan Inc (KMI)
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 | 9.66 | 10.57 | 13.35 | 14.23 | 10.20 | 10.17 | 8.58 | 9.45 | 10.05 | 10.68 | 10.17 | 9.69 | 8.73 | 10.45 | 11.40 | 10.87 | 9.38 | 10.71 | 11.36 | 10.81 | |
DSO | days | 37.80 | 34.53 | 27.34 | 25.65 | 35.78 | 35.89 | 42.56 | 38.64 | 36.32 | 34.19 | 35.90 | 37.68 | 41.80 | 34.92 | 32.02 | 33.59 | 38.91 | 34.07 | 32.13 | 33.78 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.66
= 37.80
To analyze Kinder Morgan Inc's Days Sales Outstanding (DSO) over the past eight quarters, we observe a trend of fluctuating values. In Q1 2022, the DSO was 38.64 days, decreasing to 42.56 days in Q2 2022 before declining again to 35.89 days in Q3 2022. Subsequently, in Q4 2022, the DSO increased to 34.98 days before rising to 25.65 days in Q1 2023 and further to 27.34 days in Q2 2023. However, in Q3 2023, the DSO decreased to 34.53 days but increased again to 37.80 days in Q4 2023.
This fluctuation in DSO indicates variability in the company's accounts receivable collection efficiency. A decreasing DSO suggests that Kinder Morgan Inc is collecting payments from customers more quickly, which is a positive sign of liquidity and efficient working capital management. Conversely, an increasing DSO may indicate potential issues with collecting receivables promptly, leading to higher working capital requirements and possibly liquidity challenges.
Overall, a thorough examination of the reasons behind these fluctuations in DSO, along with industry benchmarks and historical performance, would provide deeper insights into Kinder Morgan Inc's financial health and operational efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023
See also:
Kinder Morgan Inc Average Receivable Collection Period (Quarterly Data)