Sempra Energy (SRE)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.32 | 7.35 | 5.15 | 5.92 | 6.65 | |
| DSO | days | 57.75 | 49.69 | 70.83 | 61.69 | 54.93 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.32
= 57.75
The days of sales outstanding (DSO) for Sempra Energy have shown some fluctuations over the past five years. In December 2020, the DSO stood at 54.93 days, indicating that on average, it took the company approximately 55 days to collect its accounts receivable.
By December 2021, the DSO had increased to 61.69 days, suggesting a slight delay in collecting payments from customers. This trend continued in December 2022, with the DSO rising further to 70.83 days, indicating a longer collection period.
However, there was a significant improvement by December 2023, with the DSO decreasing to 49.69 days, which signifies a more efficient collection process compared to the previous year. In December 2024, the DSO increased slightly to 57.75 days, but it still remained lower than the peak in 2022.
Overall, the trend in Sempra Energy's DSO indicates some variability in the efficiency of its account receivables management. It is essential for the company to monitor this ratio closely to ensure timely collections and maintain a healthy cash flow position.
Peer comparison
Dec 31, 2024