Otter Tail Corporation (OTTR)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		8.99	8.48	10.06	6.77	7.54
DSO	days	40.59	43.06	36.27	53.88	48.43

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.99
= 40.59

Based on the data provided for Otter Tail Corporation's Days Sales Outstanding (DSO), there has been some fluctuation in the efficiency of the company's accounts receivable management over the past five years.

In December 31, 2020, the DSO was at 48.43 days, indicating that on average, it took the company approximately 48 days to collect the outstanding sales revenue. Over the following years, there was an increase in DSO to 53.88 days in December 31, 2021, before a significant improvement to 36.27 days by December 31, 2022. This suggests that the company was able to collect outstanding sales revenue more quickly in 2022 compared to the previous year.

However, in the subsequent years, the DSO increased slightly to 43.06 days in December 31, 2023, and then decreased again to 40.59 days by December 31, 2024. Overall, while there have been fluctuations in the DSO, it is essential for the company to closely monitor and manage its accounts receivable to ensure efficient cash flow and timely collection of sales revenue.