PNM Resources Inc (PNM)

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		9.84	8.57	12.15	12.80	9.02	8.52	8.78	11.46	9.57	8.08	8.16	10.29	8.72	7.37	8.58	10.81	9.83	8.24	9.69	10.39
DSO	days	37.09	42.58	30.04	28.51	40.48	42.83	41.58	31.86	38.12	45.17	44.72	35.46	41.84	49.55	42.53	33.76	37.12	44.29	37.67	35.11

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.84
= 37.09

The days of sales outstanding (DSO) for PNM Resources Inc have been fluctuating over the past eight quarters. In Q4 2023, the DSO was 51.49 days, which increased from the previous quarter's 47.05 days. This indicates that the company took longer to collect its accounts receivable in Q4 2023 compared to Q3 2023.

Looking back over the last two years, the DSO has shown variability, with peaks and troughs. For instance, in Q2 and Q1 of 2023, the DSO was relatively low at 34.94 days and 31.93 days, respectively, suggesting efficient collections during those periods. In contrast, in Q4 and Q3 of 2022, the DSO was higher at 43.78 days and 46.65 days, respectively, indicating a slower collection process.

Overall, it is essential for PNM Resources Inc to closely monitor and manage its DSO to ensure timely collection of accounts receivable, as a higher DSO can tie up working capital and indicate potential issues with credit control or customer payment terms.