National Fuel Gas Company (NFG)

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		183.00	—	—	194.90	53.22	—	—	247.73	87.02	—	—	627.02	78.71	—	—	105.10	10.36	12.10	9.45	7.11
DSO	days	1.99	—	—	1.87	6.86	—	—	1.47	4.19	—	—	0.58	4.64	—	—	3.47	35.22	30.17	38.63	51.34

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 183.00
= 1.99

Days of Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is managing its accounts receivable. It indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO value is generally preferred as it signifies faster collection of receivables.

Analyzing the trend of National Fuel Gas Co.'s DSO over the past eight quarters reveals fluctuations in the efficiency of its accounts receivable management. In Q1 2024, the DSO stood at 45.82 days, indicating an increase compared to the previous quarter. This suggests that the company took longer to collect payments from customers in the most recent quarter.

In contrast, Q4 2023 showed a significant improvement in DSO, with the value dropping to 32.47 days from 33.02 days in Q3 2023. This decline indicates a more efficient collection of receivables during that period.

Looking further back, Q2 and Q1 of 2023 saw relatively high DSO figures of 50.97 days and 67.51 days, respectively. These elevated values may raise concerns about the company's credit and collection policies during those quarters.

Comparing the current DSO with the figures from the same quarter in previous years provides additional insight into National Fuel Gas Co.'s trends in receivables management. For instance, Q1 2024's DSO of 45.82 days is lower than the DSO values reported in Q4 2022 and Q3 2022, indicating an improvement in efficiency compared to those quarters.

Overall, a detailed analysis of National Fuel Gas Co.'s DSO over multiple quarters highlights the importance of monitoring the company's effectiveness in collecting payments from customers, identifying trends in receivables management, and evaluating the impact of company policies on cash flow and liquidity. It is crucial for stakeholders to assess changes in DSO over time to understand the company's financial performance and operational efficiency.