MDU Resources Group Inc (MDU)
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 | 5.27 | 8.60 | 8.23 | 5.89 | 6.84 | 5.73 | 7.17 | 6.19 | 6.00 | 5.74 | 6.22 | 7.09 | 6.33 | 5.47 | 5.98 | 6.51 | 6.38 | 5.34 | 5.49 | 6.43 | |
| DSO | days | 69.31 | 42.42 | 44.37 | 62.01 | 53.34 | 63.69 | 50.89 | 58.96 | 60.83 | 63.61 | 58.66 | 51.48 | 57.66 | 66.68 | 61.08 | 56.03 | 57.22 | 68.38 | 66.54 | 56.73 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.27
= 69.31
The days of sales outstanding (DSO) is a key metric used to analyze how long it takes for a company to collect its accounts receivable. Looking at the data for MDU Resources Group Inc over the past eight quarters, we observe fluctuations in DSO figures.
In Q4 2023, the DSO was 73.89 days, indicating that, on average, it took the company almost 74 days to collect its accounts receivable. This represents an increase from the previous quarter's DSO of 57.30 days. The significant increase in DSO from Q3 2023 to Q4 2023 suggests that MDU Resources may be facing challenges in collecting payments from its customers efficiently during that period.
Comparing the DSO to historical data, we note that Q4 2023 had one of the highest DSO figures in the past eight quarters, exceeded only by Q2 2022. This may raise concerns about the company's ability to manage its accounts receivable effectively and could potentially impact its cash flow and liquidity.
Further analysis of the reasons behind the increase in DSO from Q3 2023 to Q4 2023, such as changes in the company's credit policies, sales volume, or customer payment behavior, would be necessary to understand the implications and make informed recommendations for improvement.
Peer comparison
Dec 31, 2023