Public Service Enterprise Group Inc (PEG)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.47	4.18	4.66	5.64	6.41
DSO	days	56.39	87.34	78.28	64.69	56.98

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.47
= 56.39

Public Service Enterprise Group Inc.'s days of sales outstanding (DSO) measures how efficiently the company collects its accounts receivable. A lower DSO indicates faster collection of receivables, which is generally preferable as it reflects a quicker cash conversion cycle.

Analyzing the trend over the past five years, we observe fluctuations in PSEG's DSO. In 2019, the DSO stood at 56.98 days and decreased to 64.69 days in 2020 before showing a substantial increase to 78.28 days in 2021. This increase suggests a potential delay in collecting receivables during the year.

The DSO decreased significantly in 2022 to 87.34 days, indicating an improvement in receivables collection efficiency. Interestingly, by the end of 2023, the DSO dropped to 56.39 days, reverting to a level similar to that of 2019. This reduction may signify enhanced cash flow management and a more timely collection of accounts receivable during the year.

Overall, while the DSO has shown variability over the past five years, the recent decline to 56.39 days in 2023 is a positive sign of efficient receivables management at Public Service Enterprise Group Inc. It will be essential to monitor future DSO figures to ensure continued effectiveness in collecting accounts receivable efficiently.