One Gas Inc (OGS)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.82	4.65	5.29	5.22	6.61
DSO	days	53.53	78.41	68.97	69.88	55.21

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.82
= 53.53

Days Sales Outstanding (DSO) measures how long it takes a company to collect revenue after a sale is made. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally a positive sign.

Looking at the historical data for ONE Gas Inc, we can see a fluctuation in the DSO over the past five years. In 2019, the DSO was 57.42 days, indicating a relatively efficient collections process. However, in 2020, the DSO increased to 69.88 days, signaling a potential delay in collecting revenue.

The DSO improved in 2021 to 68.97 days but increased again in 2022 to 78.41 days, which could be a cause for concern as it indicates a slower collections process. However, there was a substantial improvement in 2023, with the DSO dropping to 53.53 days, suggesting a more efficient collections strategy or improved payment terms with customers.

Overall, ONE Gas Inc's DSO has shown variability over the past five years, with fluctuations indicating changes in the company's ability to collect revenue promptly. It would be important to monitor this metric closely in the future to ensure efficient cash flow management.