Essential Utilities Inc (WTRG)

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		8.36	10.92	10.21	6.99	6.07	10.46	9.18	6.94	7.20	10.58	9.34	7.07	5.35	6.40	5.19	3.58	8.27	7.43	7.69	8.76
DSO	days	43.67	33.44	35.77	52.22	60.11	34.88	39.75	52.56	50.71	34.50	39.08	51.60	68.20	57.02	70.30	101.89	44.15	49.11	47.45	41.65

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.36
= 43.67

Essential Utilities Inc's Days of Sales Outstanding (DSO) has shown fluctuations over the past eight quarters. In Q4 2023, the company's DSO stood at 43.67 days, which represents an increase from the previous quarter's DSO of 33.44 days. This indicates that the company took longer to collect its accounts receivable in the most recent quarter.

Comparing with the same quarter in the previous year, Essential Utilities Inc's DSO has improved significantly from 60.11 days in Q4 2022 to 43.67 days in Q4 2023, showing better efficiency in collecting receivables.

On a quarterly basis, the DSO has shown volatility, with fluctuating trends observed throughout the quarters. The company experienced its highest DSO in Q4 2022 at 60.11 days, followed by a significant decrease in the subsequent quarters. However, in Q1 2023, there was a spike in DSO to 52.22 days, followed by a decrease in Q2 and Q3 before the increase in Q4 2023.

Overall, Essential Utilities Inc's DSO trend indicates some level of inconsistency in managing accounts receivable collection, with a mix of improvements and setbacks over the quarters analyzed. Further monitoring and analysis of the company's collection practices and credit policies may be necessary to enhance efficiency in managing receivables.