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.