Portland General Electric Co (POR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.30 | 5.00 | 5.37 | 5.83 | 12.71 | |
| DSO | days | 68.93 | 72.94 | 67.94 | 62.62 | 28.71 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.30
= 68.93
Portland General Electric Co's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payments from its customers after making a sale. A higher DSO indicates slower collections and potential liquidity issues, while a lower DSO suggests efficient collections and better cash flow management.
Analyzing the trend in Portland General Electric Co's DSO over the past five years, we observe an increasing pattern from 43.50 days in 2019 to 51.70 days in 2023. This trend suggests that the company may be taking longer to collect payments from its customers, potentially impacting its cash flow and liquidity position.
The increase in DSO could be due to various factors such as changes in customer payment behavior, extended credit terms, industry-specific trends, or changes in the company's sales mix. It is crucial for Portland General Electric Co to monitor and manage its DSO effectively to ensure timely collections and maintain healthy cash flow levels.
Additionally, comparing Portland General Electric Co's DSO to industry benchmarks and peer companies can provide further insights into its performance in managing receivables. It is important for the company to implement strategies to improve collections efficiency and shorten DSO to enhance its overall financial health and stability.
Peer comparison
Dec 31, 2023