Pinnacle West Capital Corp (PNW)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.55	9.75	10.17	11.93	12.40
DSO	days	38.22	37.44	35.90	30.59	29.44

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.55
= 38.22

The Days Sales Outstanding (DSO) ratio for Pinnacle West Capital Corp. has been relatively stable over the past five years. It increased from 42.92 days in 2019 to 51.25 days in 2023. This trend indicates that, on average, it took Pinnacle West Capital Corp. 51.25 days to collect revenue from its customers at the end of 2023. A higher DSO may suggest that the company is facing challenges in collecting payments from customers promptly, potentially impacting its cash flow and liquidity. Monitoring DSO trends can provide insights into the company's credit policies, customer payment behaviors, and overall efficiency in managing receivables.