OGE Energy Corporation (OGE)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		9.47	6.67	8.26	10.29	8.92	6.35	8.66	11.31	9.78	8.07	8.12	11.46	15.89	10.94	12.48	16.14	9.09	7.47	8.49	10.70
DSO	days	38.54	54.75	44.20	35.48	40.90	57.49	42.14	32.28	37.30	45.25	44.95	31.84	22.97	33.37	29.24	22.61	40.16	48.85	43.00	34.12

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.47
= 38.54

The Days of Sales Outstanding (DSO) ratio for OGE Energy Corporation has shown fluctuations over the past few years. The DSO represents the average number of days it takes for the company to collect payment after making a sale.

Observing the trend in DSO values from March 31, 2020, to December 31, 2024, it can be noted that there have been varying levels of efficiency in collecting accounts receivable.

Initially, the DSO increased from 34.12 days on March 31, 2020, to a peak of 57.49 days on September 30, 2023. This suggests a longer average collection period for receivables, indicating potential issues with collecting payments efficiently from customers during this period.

However, there were improved DSO figures in the subsequent periods, with a decrease to 38.54 days on December 31, 2024. This reduction in DSO indicates an enhancement in the company's ability to collect payments quicker and more effectively.

Overall, it is essential for OGE Energy Corporation to maintain a reasonable DSO ratio to ensure a healthy cash flow and efficient working capital management. Analyzing and actively managing DSO trends can help the company optimize its collection processes, improve liquidity, and strengthen overall financial performance.