MGE Energy Inc (MGEE)
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 | 6.97 | 7.86 | 7.60 | 7.57 | 7.23 | 8.34 | 8.67 | 7.53 | 6.50 | 8.45 | 8.51 | 6.73 | 6.25 | 7.35 | 7.93 | 7.13 | 7.07 | 7.87 | 8.45 | 7.79 | |
| DSO | days | 52.40 | 46.45 | 48.02 | 48.23 | 50.50 | 43.75 | 42.10 | 48.44 | 56.15 | 43.21 | 42.88 | 54.25 | 58.43 | 49.68 | 46.04 | 51.16 | 51.63 | 46.40 | 43.22 | 46.83 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.97
= 52.40
Days Sales Outstanding (DSO) is a key metric used to measure how efficiently a company is able to collect its accounts receivable. Looking at the historical DSO trend for MGE Energy Inc over recent quarters, we can observe fluctuations in the number of days it takes for the company to convert its sales into cash.
From March 31, 2020, to December 31, 2024, the DSO for MGE Energy Inc has shown variability, ranging from a low of 42.10 days on June 30, 2023, to a high of 58.43 days on December 31, 2021. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be a positive indicator of strong cash flow management.
Analyzing the trend, there are periods where the DSO has improved, such as the decrease from December 31, 2021, to June 30, 2022. However, there are also instances of deterioration, as seen in the increase from June 30, 2022, to December 31, 2022. These fluctuations in DSO could be influenced by factors like changes in customer payment behavior, credit policies, or overall economic conditions within the company's industry.
It is crucial for MGE Energy Inc to closely monitor and manage its DSO to ensure timely collections and optimize cash flow. Companies with a high DSO may face liquidity challenges, while a consistently low DSO could indicate an aggressive collection policy that might risk customer relationships. Therefore, ongoing analysis and strategic adjustments may be necessary to maintain a healthy balance in days sales outstanding.