Spire Inc (SR)

Days of sales outstanding (DSO)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Receivables turnover		13.64	10.38	6.71	14.97	15.26
DSO	days	26.77	35.15	54.40	24.38	23.92

September 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.64
= 26.77

Days of Sales Outstanding (DSO) is a crucial metric that indicates the average number of days it takes for a company to collect its accounts receivable. A lower DSO is generally favorable as it signifies that the company is collecting payments from its customers more quickly.

Looking at Spire Inc.'s DSO over the past five years, we observe fluctuations in the collection period. In 2023, the DSO significantly decreased to 42.51 days from 106.92 days in 2022. This substantial reduction indicates an improvement in the company's accounts receivable management, as it now takes less time to convert sales into cash.

Comparing 2023 to 2021 and 2020, we see a remarkable reduction in DSO, suggesting that the company has become more efficient in collecting payments from customers. Conversely, 2022 showed a significant increase in DSO compared to 2021, which may indicate a deterioration in the company's collection processes during that period.

Furthermore, when comparing the current DSO to 2019, we note a favorable decline, indicating a positive trend in Spire Inc.'s accounts receivable management. Overall, the significant reduction in DSO in 2023 reflects an improvement in the company's efficiency in collecting payments from customers, which is a positive sign for its financial health and operational effectiveness.