Pinnacle West Capital Corp (PNW)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		10.23	9.55	9.75	10.17	11.93
DSO	days	35.66	38.22	37.44	35.90	30.59

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.23
= 35.66

The Days of Sales Outstanding (DSO) for Pinnacle West Capital Corp have shown an increasing trend over the years, indicating a potential slowdown in collecting payments from customers.

As of December 31, 2020, the DSO was reported at 30.59 days, showing a relatively efficient collection process. However, by December 31, 2024, the DSO had increased to 35.66 days, suggesting a lengthier period for the company to convert sales into cash.

The rising DSO could be a concern as it may indicate potential issues with accounts receivable management or changes in customer payment behaviors. Pinnacle West may need to review its credit policies, collections procedures, or customer relationships to address this trend and improve cash flow efficiency.

Overall, the increase in DSO over the years for Pinnacle West Capital Corp highlights the importance of closely monitoring and managing receivables to maintain financial health and operational effectiveness.