Public Service Enterprise Group Inc (PEG)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		4.47	6.47	4.18	4.66	5.64
DSO	days	81.73	56.39	87.34	78.28	64.69

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.47
= 81.73

Public Service Enterprise Group Inc's days of sales outstanding (DSO) is a measure that indicates the average number of days it takes for the company to collect payment from its customers after making a sale. The trend analysis of PSEG's DSO over the past five years shows fluctuations with a notable increase from 64.69 days as of December 31, 2020, to 87.34 days as of December 31, 2022. This indicates a lengthening of the collection period over these years. However, there was a significant decrease to 56.39 days as of December 31, 2023, followed by an increase to 81.73 days as of December 31, 2024.

The average DSO for Public Service Enterprise Group Inc during this period seems to be around 73.68 days. The upward trend in DSO from 2020 to 2022 might suggest potential difficulties in collecting receivables efficiently, which could impact the company's cash flow. The subsequent decrease in 2023 followed by another increase in 2024 demonstrates some variability in the company's collection performance.

It is essential for PSEG to closely monitor and manage its DSO to ensure timely collections and maintain healthy cash flows. Further investigation into the reasons behind the fluctuations in DSO would provide valuable insights into the company's receivables management efficiency.