Middlesex Water Company (MSEX)

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		5.59	5.18	6.05	6.50	6.53	5.32	5.90	6.67	5.99	5.21	6.15	6.76	6.19	5.40	6.01	7.29	6.66	5.62	6.47	7.72
DSO	days	65.28	70.46	60.30	56.18	55.89	68.65	61.81	54.72	60.93	70.10	59.32	53.99	58.95	67.56	60.75	50.05	54.78	65.00	56.42	47.28

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.59
= 65.28

To analyze Middlesex Water Co.'s days of sales outstanding (DSO) over the past eight quarters, we observe fluctuations in the collection efficiency of the company.

In Q3 2023, the DSO spiked significantly to 270.68 days, indicating a substantial delay in collecting receivables compared to previous quarters. This aberration suggests potential liquidity issues or difficulties in collecting payments from customers during that period.

Conversely, in Q2 2023 and Q1 2023, the DSO decreased to 57.30 days and 53.70 days, respectively, showing an improvement in collecting receivables more efficiently compared to Q3 2023. This might indicate enhanced credit management or prompt customer payments during these quarters.

Looking at Q4 2022, the DSO was 55.45 days, slightly higher than Q1 2023 and Q2 2023 but still relatively consistent with the company's historical performance.

Overall, while some quarters showed fluctuations, Middlesex Water Co. has generally maintained its DSO at a moderate level over the past eight quarters, reflecting a reasonably efficient collection process. However, management should closely monitor periods of exceptional spikes, such as in Q3 2023, to address any underlying issues promptly and ensure optimal cash flow management.