Otter Tail Corporation (OTTR)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		8.48	10.06	6.77	7.54	8.26
DSO	days	43.06	36.27	53.88	48.43	44.21

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.48
= 43.06

To analyze Otter Tail Corporation's Days Sales Outstanding (DSO) over the past five years, we observe a fluctuating trend:
- In 2023, the DSO increased to 42.51 days from 36.09 days in 2022, reflecting a slower collection of accounts receivable compared to the previous year.
- In 2022, the DSO decreased to 36.09 days from 53.36 days in 2021, indicating improved efficiency in collecting payments from customers.
- In 2021, the DSO increased significantly to 53.36 days from 46.73 days in 2020, suggesting potential challenges in receivables management or slower collection times.
- In 2020, the DSO was 46.73 days, slightly higher than the 43.31 days in 2019, indicating a longer time taken to convert sales into cash in that year.
- In 2019, the DSO was 43.31 days, showing improved efficiency in collecting receivables compared to the subsequent year.

Overall, the company's DSO has experienced fluctuations over the past five years, indicating varying effectiveness in managing accounts receivable and collecting payments from customers promptly. Further analysis would be required to understand the factors influencing these changes and to assess the company's overall liquidity and operational efficiency.