PPL Corporation (PPL)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.81	7.55	9.02	6.21	7.07
DSO	days	53.62	48.32	40.46	58.74	51.60

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.81
= 53.62

To analyze PPL Corp's Days Sales Outstanding (DSO) over the past five years, we observe the following trend:

- In 2023, the DSO stood at 72.41 days, slightly lower than the previous year's 73.81 days.
- Comparing to 2021, there was an increase in DSO from 59.83 days to 73.81 days in 2022, indicating that the company took longer to collect its accounts receivable during the year.
- The DSO in 2020 was 66.17 days, showing a decrease from 2019, when it was 60.89 days.
- Therefore, the DSO has fluctuated over the past five years, suggesting potential variations in PPL Corp's accounts receivable management efficiency.

Overall, a lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be beneficial for liquidity and working capital management. Conversely, a higher DSO may indicate potential issues with collections or customers' ability to pay, impacting the company's cash flow. It would be essential for PPL Corp to continue monitoring and managing its DSO effectively to ensure efficient accounts receivable management.