NorthWestern Corporation (NWE)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Receivables turnover | 5.35 | 10.38 | 9.85 | |
| DSO | days | 68.22 | 35.17 | 37.06 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.35
= 68.22
To analyze NorthWestern Corporation's days of sales outstanding (DSO) based on the provided data, we observe a fluctuation in DSO over the three reported periods.
As of June 30, 2024, the company's DSO stood at 37.06 days, reflecting the average number of days it takes for NorthWestern Corporation to collect revenue from its sales. This metric decreased marginally to 35.17 days by September 30, 2024, indicating an improvement in the efficiency of the company's accounts receivable collection process.
However, by December 31, 2024, the DSO spiked to 68.22 days, signifying a significant delay in collecting sales revenue compared to the previous periods. This extended collection period may raise concerns regarding the company's liquidity and working capital management.
Overall, the trend in NorthWestern Corporation's DSO suggests fluctuations in the effectiveness of its accounts receivable management over the analyzed periods, warranting further examination to identify the underlying factors contributing to the observed changes.
Peer comparison
Dec 31, 2024