UNITIL Corporation (UTL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 12.79 | 11.96 | 12.37 | 12.12 | 14.09 | |
| DSO | days | 28.54 | 30.51 | 29.50 | 30.12 | 25.91 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.79
= 28.54
To analyze Unitil Corp.'s days of sales outstanding (DSO) trend, we can observe a general decrease in the DSO over the past five years. This indicates that Unitil Corp. has been collecting its accounts receivable more efficiently over time.
The DSO decreased from 62.80 days in 2019 to 55.30 days in 2023, reflecting an improvement in the company's ability to collect revenue from its customers. This trend suggests that Unitil Corp. has been managing its accounts receivable more effectively, possibly through stricter credit policies or more timely collection efforts.
The decreasing DSO trend is a positive indicator of liquidity and operational efficiency for Unitil Corp., as it implies that the company is converting its sales into cash more quickly. This improvement can lead to better cash flow management and working capital efficiency for the company.
Peer comparison
Dec 31, 2023