Pinnacle West Capital Corp (PNW)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		10.23	6.12	8.91	11.57	9.55	7.32	9.90	10.23	9.75	7.10	9.95	12.68	10.17	9.25	11.04	14.92	11.93	8.71	12.11	12.51
DSO	days	35.66	59.66	40.95	31.55	38.22	49.89	36.85	35.69	37.44	51.39	36.68	28.80	35.90	39.45	33.05	24.46	30.59	41.90	30.13	29.17

December 31, 2024 calculation

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

Days of Sales Outstanding (DSO) is a metric used to evaluate how efficiently a company is managing its accounts receivable. For Pinnacle West Capital Corp, the DSO trend indicates the average number of days it takes for the company to collect payments after making a sale.

Analyzing the data provided, Pinnacle West Capital Corp's DSO has fluctuated over the observed period. It ranged from a low of 24.46 days on March 31, 2021, to a high of 59.66 days on September 30, 2024. This variability suggests potential shifts in the company's accounts receivable management practices or changes in its customer base.

It is crucial to consider the industry norms and compare Pinnacle West Capital Corp's DSO with its peers to determine if the company is efficiently managing its accounts receivable. A lower DSO indicates faster collections and better liquidity, while a higher DSO could signify potential collection issues and cash flow constraints.

Overall, consistent monitoring and analysis of Pinnacle West Capital Corp's DSO can provide valuable insights into the company's financial performance and its ability to efficiently convert sales into cash.