Spire Inc (SR)

Days of sales outstanding (DSO)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Receivables turnover		14.66	13.64	10.38	6.71	14.97
DSO	days	24.90	26.77	35.15	54.40	24.38

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.66
= 24.90

The Days Sales Outstanding (DSO) is a measure of how long on average it takes for a company to collect payments from its customers. A lower DSO indicates more efficient accounts receivable management, while a higher DSO may suggest potential issues with collecting payments in a timely manner.

Analyzing the DSO trend for Spire Inc over the past five years, we observe fluctuations in the collection efficiency. In Sep 30, 2024, the DSO was 24.90 days, showing an improvement compared to the previous year's 26.77 days. This suggests that Spire Inc has been able to collect payments more quickly from its customers in the most recent period.

Looking back further, there was a notable increase in DSO from 2021 to 2022, where the DSO rose from 54.40 days to 35.15 days. This increase indicates a potential challenge in collecting receivables efficiently during that period. However, the DSO dropped significantly in 2020 to 24.38 days, which was closer to the recent DSO level in 2024.

Overall, Spire Inc's management of accounts receivable has shown variability in recent years, with improvements in efficiency demonstrated by the declining trend in DSO. Continued monitoring of DSO and further analysis of underlying factors affecting receivables management would be beneficial to assess the company's overall financial health and operational effectiveness.