Southern Company (SO)

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		10.18	9.71	15.64	16.08	14.16	13.07	11.85	12.44	13.38	12.77	13.70	13.36	12.46	12.01	13.48	13.56	13.69	12.38	13.72	13.50
DSO	days	35.86	37.61	23.34	22.69	25.77	27.94	30.81	29.34	27.29	28.58	26.65	27.32	29.29	30.38	27.07	26.91	26.67	29.49	26.60	27.03

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.18
= 35.86

Southern Company's Days of Sales Outstanding (DSO) have shown some fluctuations over the past eight quarters. In Q1 2023, the DSO stood at 36.56 days, indicating that on average, it took the company approximately 36.56 days to collect revenue from its customers. This was a notable improvement from the previous quarter, where the DSO was 39.84 days.

Overall, the trend in DSO from Q1 2022 to Q4 2023 has been somewhat volatile, with fluctuations between 36.56 days and 49.74 days. It is essential for the company to monitor and manage its DSO levels effectively, as lower DSO indicates better cash flow management and efficient accounts receivable collection processes.

Additionally, the company should aim to strike a balance between collecting receivables promptly and maintaining good customer relationships to ensure steady cash inflows. Attention to DSO trends can provide valuable insights into the company's liquidity, operational efficiency, and overall financial performance.