Spire Inc (SR)

Days of sales outstanding (DSO)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		14.37	10.82	5.96	5.82	13.88	9.42	5.19	5.02	10.38	7.39	4.75	4.75	6.71	6.52	4.81	6.37	14.97	12.84	7.49	7.21
DSO	days	25.40	33.73	61.24	62.75	26.30	38.74	70.32	72.76	35.15	49.40	76.79	76.78	54.40	56.02	75.89	57.27	24.38	28.43	48.74	50.64

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.37
= 25.40

The Days of Sales Outstanding (DSO) ratio for Spire Inc has fluctuated over the periods outlined in the table. DSO measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates a faster collection of accounts receivable, which is generally favorable as it signifies efficient cash flow management.

In the most recent period ending September 30, 2024, the DSO stood at 25.40 days, indicating the company was able to collect revenue relatively quickly compared to previous periods. A decreasing trend in DSO over time could suggest more efficient credit and collection policies, improved customer payment behavior, or effective management of accounts receivable.

Conversely, periods with higher DSO, such as December 31, 2023, with a DSO of 62.75 days, and March 31, 2023, with a DSO of 70.32 days, may indicate potential issues with accounts receivable management, slower customer payments, or changes in credit terms.

Overall, monitoring DSO trends can provide valuable insights into a company's liquidity, operational efficiency, and effectiveness in managing its receivables. It is essential for Spire Inc to continue monitoring and optimizing its DSO to ensure healthy cash flow and sustainable business operations.