NRG Energy Inc. (NRG)

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		8.14	7.94	9.30	8.91	6.60	7.57	7.47	8.14	8.32	7.10	6.44	4.99	10.06	8.22	9.31	10.57	9.58	6.99	9.13	10.67
DSO	days	44.85	45.99	39.26	40.95	55.29	48.23	48.89	44.83	43.89	51.44	56.69	73.10	36.29	44.38	39.21	34.52	38.09	52.22	39.96	34.22

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.14
= 44.85

The Days of Sales Outstanding (DSO) ratio for NRG Energy Inc. measures the average number of days it takes for the company to collect payment for its sales. A lower DSO indicates that the company is efficient in collecting revenue, while a higher DSO may suggest potential issues with accounts receivable management.

Analyzing the trend in NRG Energy Inc.'s DSO over the past eight quarters, we observe fluctuations in the collection period. In Q4 2023, the DSO decreased to 44.85 days from 45.99 days in Q3 2023, indicating an improvement in the company's collection efficiency. This decrease follows a general downward trend in DSO from Q2 2023 to Q4 2023.

Comparing the recent DSO figures to those from the same period in the previous year, we see a significant improvement in collection efficiency. Q4 2023's DSO of 44.85 days is notably lower than the DSO of 55.23 days in Q4 2022. This improvement suggests that NRG Energy Inc. has been more effective in collecting payments from customers over the past year.

Overall, the trend in NRG Energy Inc.'s DSO indicates a positive shift towards better accounts receivable management and improved collection efficiency. However, it is essential for the company to continue monitoring and managing its DSO to ensure timely collection of revenues and maintain healthy cash flow.