Kinder Morgan Inc (KMI)

Days of sales outstanding (DSO)

		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	Jun 30, 2020	Mar 31, 2020
Receivables turnover		10.03	11.98	11.88	10.89	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
DSO	days	36.40	30.47	30.73	33.52	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

December 31, 2024 calculation

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

Days Sales Outstanding (DSO) is a financial ratio that indicates the average number of days it takes for a company to collect payment after making a sale. By analyzing the DSO trend of Kinder Morgan Inc over multiple periods, we can gather insights into the company's accounts receivables management and liquidity.

Based on the provided data, Kinder Morgan Inc's DSO has fluctuated over the reported periods, ranging from a low of 25.65 days as of March 31, 2023, to a high of 42.56 days as of June 30, 2022. The DSO figures show some variability, highlighting potential changes in Kinder Morgan Inc's credit policies, customer payment behaviors, or efficiency in collecting receivables.

It is important to note that a decreasing DSO could indicate more efficient collections and tighter credit policies, while an increasing DSO might suggest issues with receivables management or potential liquidity challenges. In this case, Kinder Morgan Inc experienced a significant drop in DSO from June 30, 2024 (30.73 days) to September 30, 2024 (30.47 days), which could be indicative of improved collections practices or a change in customer payment patterns.

Overall, a thorough analysis of Kinder Morgan Inc's DSO trend, in conjunction with other financial metrics, can provide valuable insights into the company's cash flow management, credit risk, and overall financial health. Monitoring DSO figures regularly can help company management assess the effectiveness of their accounts receivable processes and make informed decisions to optimize working capital efficiency.