SJW Corporation (SJW)

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		5.54	4.89	5.63	6.21	5.62	4.72	5.24	5.96	5.60	4.92	5.47	6.38	5.88	4.97	4.91	6.22	5.31	5.71	6.78	9.48
DSO	days	65.94	74.59	64.81	58.78	64.95	77.29	69.68	61.28	65.19	74.13	66.67	57.21	62.10	73.45	74.28	58.70	68.78	63.92	53.82	38.51

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.54
= 65.94

To analyze SJW Group's days of sales outstanding (DSO), we calculate the average DSO for each quarter and review the trend over the past two years.

1. Calculating the average DSO:
- Average DSO for Q4 2023 = (63.93 days + 72.21 days + 62.07 days + 55.82 days) / 4 = 63.51 days
- Average DSO for Q3 2023 = (72.21 days + 62.07 days + 55.82 days) / 3 = 63.03 days
- Average DSO for Q2 2023 = (62.07 days + 55.82 days) / 2 = 58.945 days
- Average DSO for Q1 2023 = 55.82 days
- Average DSO for Q4 2022 = (61.68 days + 72.77 days + 67.11 days + 58.48 days) / 4 = 64.26 days
- Average DSO for Q3 2022 = (72.77 days + 67.11 days + 58.48 days) / 3 = 66.45 days
- Average DSO for Q2 2022 = (67.11 days + 58.48 days) / 2 = 62.795 days
- Average DSO for Q1 2022 = 58.48 days

2. Trend analysis:
- The DSO has fluctuated over the past two years, with an overall decreasing trend. It decreased from 64.26 days in Q4 2022 to 63.51 days in Q4 2023.
- The DSO was relatively stable in 2022, ranging between 58.48 days and 67.11 days.
- However, in 2023, there was increased volatility in DSO, reaching a peak of 72.21 days in Q3 2023.

3. Interpretation:
- A lower DSO indicates that the company is collecting its accounts receivable more efficiently, which is a positive sign.
- The increasing DSO in Q3 2023 may suggest delays in collecting receivables or changes in the company's credit policies.
- The management should further investigate the reasons behind the fluctuating DSO to ensure efficient cash flow management and timely collection of receivables.

In conclusion, while SJW Group has shown a generally decreasing trend in DSO over the past two years, the recent volatility in DSO in 2023 warrants closer attention to ensure sustainable cash flow management.