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 | ||
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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.
Peer comparison
Dec 31, 2023