Pinnacle West Capital Corp (PNW)

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		9.55	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	12.40	9.65	13.94	15.13
DSO	days	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	29.44	37.84	26.19	24.12

December 31, 2023 calculation

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

To analyze Pinnacle West Capital Corp.'s days of sales outstanding (DSO) based on the provided data, it is observed that the DSO figures have fluctuated over the past eight quarters.

The DSO decreased from Q3 2022 (71.00 days) to Q1 2022 (41.25 days) before showing an upward trend in Q2 2022 (58.33 days) and Q3 2022 (51.34 days). This increase was reversed in Q1 2023 (47.35 days), followed by a slight increase in Q2 2023 (54.26 days) and a further increase in Q3 2023 (67.47 days). Notably, in Q4 2023, there was a decrease in DSO to 51.25 days compared to the previous quarter.

The varying DSO figures indicate changes in the company's accounts receivable collection efficiency. A lower DSO generally suggests that the company is collecting payments from customers more quickly, which may improve its cash flow and working capital management. Conversely, a higher DSO may indicate slower collections, potentially leading to cash flow challenges and impacting liquidity.

It is important for Pinnacle West Capital Corp. to closely monitor its DSO and assess the underlying reasons for fluctuations to ensure efficient accounts receivable management. By effectively managing DSO, the company can optimize cash flow, strengthen its financial position, and improve overall operational performance.