Otter Tail Corporation (OTTR)

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		8.99	7.15	7.05	6.89	8.49	6.91	6.96	8.08	10.06	7.64	6.26	5.94	6.77	5.98	6.04	6.63	7.54	7.14	7.95	7.42
DSO	days	40.59	51.05	51.79	52.95	42.99	52.85	52.42	45.19	36.27	47.76	58.29	61.45	53.88	61.00	60.46	55.09	48.43	51.14	45.91	49.20

December 31, 2024 calculation

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

The Days Sales Outstanding (DSO) for Otter Tail Corporation has shown some fluctuations over the past few years, ranging from a low of 36.27 days on December 31, 2022, to a high of 61.45 days on March 31, 2022. DSO represents the average number of days it takes for the company to collect revenue after a sale is made.

In recent quarters, there has been a general trend of increasing DSO, indicating that Otter Tail Corporation may be taking longer to collect payments from its customers. This could potentially be a concerning sign as a higher DSO can tie up cash flow and indicate potential issues with accounts receivable management or the creditworthiness of customers.

It is important for the company to closely monitor its DSO and take proactive steps to improve collections processes if necessary, such as implementing stricter credit policies, enhancing invoicing procedures, or offering discounts for early payments. By effectively managing its DSO, Otter Tail Corporation can enhance its cash flow, liquidity, and overall financial health.