PPL Corporation (PPL)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.16 | 6.81 | 7.55 | 9.02 | 6.21 | |
| DSO | days | 44.73 | 53.62 | 48.32 | 40.46 | 58.74 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.16
= 44.73
PPL Corporation's Days Sales Outstanding (DSO) indicates the average number of days it takes for the company to collect revenue after making a sale.
Analyzing the trend over the past five years, we observe a decreasing trend in DSO, from 58.74 days on December 31, 2020, to 44.73 days on December 31, 2024. This suggests that the company has been able to improve its efficiency in collecting receivables, which can indicate better credit control and faster cash conversion.
However, it is worth noting that there was a slight increase in DSO from December 31, 2022, to December 31, 2023, which might warrant further investigation to understand the reasons behind this fluctuation.
Overall, the decreasing trend in DSO for PPL Corporation is a positive indicator of improved cash management and efficient working capital utilization over the past five years.
Peer comparison
Dec 31, 2024