OGE Energy Corporation (OGE)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		8.92	9.78	15.89	9.09	9.73
DSO	days	40.90	37.30	22.97	40.16	37.52

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.92
= 40.90

To analyze Oge Energy Corp.'s Days of Sales Outstanding (DSO) over the past five years, it is evident that there has been fluctuation in this metric. In 2021, the DSO decreased significantly to 22.97 days, indicating that the company was collecting its accounts receivable more efficiently compared to the previous and subsequent years. However, in 2020 and 2019, the DSO was relatively higher at 40.16 days and 37.52 days respectively, suggesting that Oge Energy Corp. took longer to convert its sales into cash during those periods.

It is important to note that a lower DSO implies that the company is able to collect payments from its customers faster, which improves its cash flow and liquidity position. Conversely, a higher DSO may signal inefficiencies in accounts receivable management, potential credit risks, or difficulties in collecting outstanding payments from customers.

Overall, while there have been fluctuations in Oge Energy Corp.'s DSO over the past five years, it is crucial for the company to closely monitor and manage this metric to ensure effective working capital management and financial health.