Otter Tail Corporation (OTTR)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		8.48	6.89	6.96	8.07	10.06	7.64	6.26	5.94	6.77	5.98	6.04	6.63	7.54	7.14	7.95	7.42	8.26	7.70	6.91	6.54
DSO	days	43.06	52.94	52.48	45.22	36.27	47.76	58.29	61.45	53.88	61.00	60.46	55.09	48.43	51.14	45.91	49.20	44.21	47.39	52.82	55.83

December 31, 2023 calculation

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

Based on the data provided, Otter Tail Corporation's Days of Sales Outstanding (DSO) has fluctuated over the past eight quarters. In Q4 2023, the DSO stood at 42.51 days, showing an improvement from the previous quarter where it was 52.77 days. This indicates that the company is collecting its accounts receivable more efficiently in the most recent quarter.

Looking back at the trend, Otter Tail Corporation experienced a significant decrease in DSO from Q3 2022 to Q4 2022, where it dropped from 57.87 days to 36.09 days. However, the DSO trend reversed in the following quarters, with an increase observed until Q3 2023.

The overall DSO trend for Otter Tail Corporation reflects some volatility in the collection period of accounts receivable. It would be advisable for the company to monitor and potentially improve its credit and collection policies to ensure a more stable and efficient cash flow in the future.