Northwest Natural Gas Co (NWN)

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		5.96	16.38	12.88	5.30	4.07	14.59	11.03	6.28	4.74	15.50	10.63	5.38	5.20	14.28	15.46	6.29	6.07	15.32
DSO	days	61.27	22.29	28.33	68.89	89.60	25.02	33.09	58.10	77.06	23.54	34.35	67.89	70.18	25.57	23.60	58.02	60.11	23.82

December 31, 2023 calculation

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

To analyze the Days of Sales Outstanding (DSO) trend for Northwest Natural Holding Co, we examine the data from the past eight quarters. DSO measures the average number of days it takes for a company to collect payment after making a sale.

In Q4 2023, the DSO increased significantly to 61.27 days from 22.29 days in Q3 2023. This sharp rise indicates that the company is taking longer to collect payments from its customers, which could lead to potential cash flow issues.

Comparing Q4 2023 to Q4 2022, there has been an improvement as DSO decreased from 89.60 days to 61.27 days. This suggests that Northwest Natural Holding Co has been more efficient in collecting payments from customers during this period.

Overall, it is essential for the company to closely monitor its DSO trend to ensure efficient cash flow management and timely collection of receivables. Any significant deviations from the historical pattern should be investigated to identify underlying issues and take appropriate corrective actions.