Southwest Gas Holdings Inc (SWX)
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 | 6.12 | 6.05 | 5.77 | 5.81 | 5.67 | 5.81 | 5.70 | 5.26 | 5.08 | 4.84 | 6.36 | 6.89 | 6.19 | 6.21 | 6.54 | 7.25 | 6.17 | 6.64 | 6.93 | 6.68 | |
| DSO | days | 59.68 | 60.37 | 63.23 | 62.81 | 64.39 | 62.77 | 64.06 | 69.45 | 71.80 | 75.36 | 57.35 | 52.94 | 58.98 | 58.82 | 55.80 | 50.32 | 59.18 | 54.99 | 52.64 | 54.68 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.12
= 59.68
Days Sales Outstanding (DSO) measures how long it takes for a company to collect its accounts receivable. A lower DSO indicates quicker collection of receivables, which is generally favorable as it implies better cash flow management. Southwest Gas Holdings Inc's DSO has shown some fluctuations over the past eight quarters, ranging from a low of 63.34 days to a high of 74.12 days.
On average, Southwest Gas Holdings Inc's DSO over the past eight quarters was approximately 67.03 days. During Q4 2023, the DSO was 65.93 days, which represents a slight improvement compared to the previous quarter. However, the DSO has been relatively consistent around the 66-70 days range over the past two years.
It is important for the company to continue monitoring and managing its accounts receivable effectively to ensure timely collections and maintain healthy cash flows. A decreasing trend in DSO over time would indicate enhanced efficiency in collecting payments from customers, leading to improved liquidity and financial stability.
Peer comparison
Dec 31, 2023