Nextera Energy Inc (NEE)

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		5.44	5.02	5.25	6.03	4.44	4.16	4.13	4.66	4.51	4.73	5.21	5.21	5.60	5.30	6.05	6.77	6.28	5.34	5.45	5.39
DSO	days	67.06	72.67	69.53	60.51	82.19	87.65	88.37	78.34	80.99	77.24	70.03	70.01	65.24	68.93	60.30	53.89	58.15	68.31	66.97	67.70

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.44
= 67.06

Days of Sales Outstanding (DSO) is a key ratio that indicates the average number of days it takes for a company to collect payment from its customers after making a sale. In the case of NextEra Energy Inc, the DSO has exhibited some fluctuations over the past eight quarters.

In Q4 2023, the DSO was 59.11 days, showing an improvement from the previous quarter's 66.08 days. This suggests that the company is managing its accounts receivable more efficiently and collecting payments from customers more quickly.

Comparing Q4 2023 to the same period in the prior year, there has been a substantial reduction in DSO from 88.71 days in Q4 2022 to 59.11 days in Q4 2023. This indicates a positive trend in NextEra Energy's ability to convert sales into cash more promptly.

Looking at the overall trend, there was a significant increase in DSO in mid-2022, reaching the highest point of 107.09 days in Q2 2022. However, the company has since made progress in reducing DSO, as seen in the recent quarters.

Overall, the decreasing trend in DSO from Q2 2022 onwards is a positive indicator of NextEra Energy's effectiveness in managing its accounts receivable and improving its cash flow position. This trend suggests that the company is becoming more efficient in collecting payments from its customers, which can have a positive impact on its liquidity and financial performance.