PG&E Corp (PCG)

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		11.93	10.45	10.57	8.60	8.20	7.91	9.82	10.44	8.80	11.55	10.48	10.43	9.81	10.05	12.49	13.10	13.31	11.51	12.72	12.59
DSO	days	30.60	34.93	34.54	42.43	44.53	46.16	37.18	34.95	41.47	31.60	34.81	35.01	37.21	36.33	29.22	27.87	27.42	31.70	28.69	28.98

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.93
= 30.60

Days of Sales Outstanding (DSO) is a financial ratio that measures how long it takes for a company to collect revenue from its credit sales. A higher DSO indicates that the company is taking longer to collect its accounts receivable, which could potentially signal issues with customer payment behavior or ineffective credit management.

Based on the data provided for PG&E Corp., we can observe fluctuations in the DSO over the past eight quarters. The DSO ranged from a low of 145.12 days in Q1 2022 to a high of 174.02 days in Q3 2022. In the most recent quarter, Q4 2023, the DSO stood at 156.23 days, showing a slight increase from the previous quarter. This upward trend in DSO may suggest that PG&E Corp. is taking longer to convert its sales into cash, which could impact its liquidity and working capital management.

It is essential for PG&E Corp. to closely monitor its DSO and take necessary steps to improve collection efficiency, such as implementing stricter credit policies, following up on overdue accounts, or offering discounts for early payments. By addressing any underlying issues contributing to the high DSO, PG&E Corp. can enhance its cash flow and financial performance in the long run.