Sempra Energy (SRE)
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 | 7.35 | 8.13 | 8.20 | 6.28 | 5.15 | 7.57 | 5.56 | 5.03 | 5.92 | 7.92 | 7.74 | 6.83 | 6.65 | 8.81 | 9.12 | 7.80 | 7.71 | 18.06 | 22.38 | 21.31 | |
| DSO | days | 49.69 | 44.91 | 44.53 | 58.09 | 70.83 | 48.22 | 65.64 | 72.55 | 61.69 | 46.10 | 47.14 | 53.46 | 54.93 | 41.44 | 40.02 | 46.82 | 47.36 | 20.21 | 16.31 | 17.13 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.35
= 49.69
DSO (Days of Sales Outstanding) is a key financial ratio that measures the average number of days it takes a company to collect revenue after making a sale. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is favorable as it improves cash flow and liquidity.
Analyzing Sempra's DSO over the past eight quarters, we observe fluctuations in the trend. In Q4 2023, the DSO was 61.93 days, showing an increase from the previous quarter's 55.81 days. This suggests that Sempra took longer to collect its receivables in Q4 2023 compared to Q3 2023.
Looking at the historical data, there was a significant improvement in DSO from Q4 2022 (88.15 days) to Q1 2023 (68.67 days), indicating a positive trend of faster collection during this period. However, the DSO increased in Q2 2023 (55.05 days) before rising further in Q3 2023 (57.35 days) and Q4 2023.
Overall, while the DSO has shown some fluctuation, it is important for Sempra to monitor and manage this ratio effectively to ensure efficient accounts receivable management and optimize cash flow. Further analysis of the underlying reasons for changes in DSO can provide insights into the company's credit policies, customer payment behavior, and overall financial performance.
Peer comparison
Dec 31, 2023