Northwest Natural Gas Co (NWN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.96	4.07	4.74	5.20	6.07
DSO	days	61.27	89.60	77.06	70.18	60.11

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.96
= 61.27

Northwest Natural Holding Co's Days Sales Outstanding (DSO) has displayed fluctuations over the past five years. In 2023, the DSO decreased to 61.27 days from 89.60 days in 2022. This suggests that the company is collecting its accounts receivable more efficiently in 2023 compared to the previous year.

However, when comparing to 2021 and 2020 where the DSO was 77.06 days and 70.21 days respectively, the DSO in 2023 is still lower, indicating an improvement in the collection of receivables. The DSO in 2019 was similar to 2023 at 60.11 days, suggesting consistent performance in collecting sales revenue efficiently over these two years.

Overall, the decreasing trend in DSO from 2022 to 2023 is a positive sign as it indicates that Northwest Natural Holding Co is managing its accounts receivable more effectively and converting sales into cash at a quicker pace. It is essential for the company to continue monitoring its DSO to ensure timely collection of receivables and maintain healthy cash flows.