PPL Corporation (PPL)

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		6.81	8.03	8.26	7.40	7.55	7.66	7.47	9.07	9.02	8.71	8.45	7.78	6.21	7.30	8.55	8.52	9.81	10.52	9.97	9.07
DSO	days	53.62	45.48	44.20	49.35	48.32	47.62	48.87	40.25	40.46	41.91	43.22	46.91	58.74	50.02	42.70	42.85	37.21	34.69	36.63	40.24

December 31, 2023 calculation

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

To analyze PPL Corp's Days of Sales Outstanding (DSO) based on the provided data, we observe fluctuations in the DSO metric over the past eight quarters.

In Q4 2023, the DSO stood at 72.41 days, increasing from the previous quarter's value of 59.45 days. This indicates that the company took longer to collect its accounts receivable in Q4 2023 compared to Q3 2023. The increased DSO could potentially signify difficulties in collecting sales revenue promptly, which might impact the company's cash flow and liquidity position.

Looking at the trend over the past quarters, we observe some variability in DSO, with fluctuations between 57.03 days in Q1 2022 and 73.81 days in Q4 2022. A lower DSO implies that the company is collecting its receivables more efficiently, whereas a higher DSO suggests a delay in collecting payments from customers.

It is essential for PPL Corp to monitor its DSO closely and ensure that it is maintained at an optimal level. A high DSO can strain the company's working capital and potentially indicate underlying issues in credit policies or customer payment behavior. On the other hand, a low DSO may signal aggressive collections practices that could harm customer relationships.

Overall, by analyzing the DSO trend, PPL Corp can gain valuable insights into its accounts receivable management and make informed decisions to improve cash flow and financial performance.