Middlesex Water Company (MSEX)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		6.48	6.05	6.53	6.01	6.19
DSO	days	56.32	60.30	55.89	60.75	58.95

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.48
= 56.32

The Days of Sales Outstanding (DSO) for Middlesex Water Company have shown some fluctuations over the past five years.

As of December 31, 2020, the DSO stood at 58.95 days, indicating that, on average, it took the company approximately 59 days to collect its accounts receivable.

In the subsequent years, there was a slight increase in DSO to 60.75 days by December 31, 2021, but it then decreased to 55.89 days by December 31, 2022. This reduction suggests that the company improved its collection efficiency.

However, in the following year, the DSO increased once again to 60.30 days by December 31, 2023, which may raise concerns about the company's ability to collect receivables promptly.

By December 31, 2024, the DSO decreased to 56.32 days, showing a recovery from the increase observed in the previous year.

In conclusion, Middlesex Water Company has experienced fluctuations in its Days of Sales Outstanding over the analyzed period, with varying levels of efficiency in collecting receivables. Efforts to consistently monitor and manage DSO are crucial to ensuring healthy cash flow and operational stability.