Middlesex Water Company (MSEX)

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		6.48	5.08	5.35	6.11	5.84	5.29	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
DSO	days	56.32	71.90	68.21	59.70	62.45	68.99	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

December 31, 2024 calculation

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

The Days of Sales Outstanding (DSO) ratio is used to evaluate how efficiently a company is managing its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly.

Analyzing the DSO trend of Middlesex Water Company over the reported periods, we observe fluctuations in the number of days it takes for the company to collect its outstanding sales:

- The DSO ranged from a low of 50.05 days on March 31, 2020, to a high of 71.90 days on September 30, 2024.
- Generally, the DSO remained relatively stable around the 60-day mark, with occasional fluctuations.
- Notable improvements were seen in the DSO on March 31, 2022, and March 31, 2023, indicating that the company may have enhanced its credit and collection processes during those periods.
- The DSO peaked at 71.90 days on September 30, 2024, suggesting potential challenges in accounts receivable management or slower collections.

In conclusion, Middlesex Water Company's DSO has shown variability over the analyzed periods, with some fluctuations indicating changes in its accounts receivable management efficiency. Further monitoring and analysis of DSO trends may provide insights into the company's liquidity and effectiveness in collecting outstanding payments from customers.