MGE Energy Inc (MGEE)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.97 | 7.23 | 6.50 | 6.25 | 7.07 | |
| DSO | days | 52.40 | 50.50 | 56.15 | 58.43 | 51.63 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.97
= 52.40
Based on the data provided for MGE Energy Inc's Days of Sales Outstanding (DSO) over the years, we can observe the following trends:
1. In December 31, 2020, the DSO was 51.63 days, indicating that on average, it took the company approximately 51.63 days to collect its accounts receivable.
2. By December 31, 2021, the DSO increased to 58.43 days, suggesting a slight deterioration in the company's ability to collect receivables promptly compared to the previous year.
3. The DSO decreased to 56.15 days by December 31, 2022, showing some improvement in collections efficiency compared to the prior year.
4. As of December 31, 2023, the DSO further decreased to 50.50 days, indicating that the company was able to collect its receivables more quickly compared to the previous period.
5. By December 31, 2024, the DSO increased slightly to 52.40 days, suggesting a minor slowdown in collections efficiency compared to the previous year.
Overall, the trend in the Days of Sales Outstanding for MGE Energy Inc suggests some fluctuations in the company's receivables management efficiency over the years, with occasional improvements and slight deteriorations in the time taken to collect accounts receivable. It is essential for the company to monitor and manage its DSO effectively to ensure healthy cash flow and working capital management.