Xcel Energy Inc (XEL)

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		10.80	12.15	13.71	12.03	11.15	12.22	12.91	11.46	13.19	12.74	13.44	12.78	12.58	12.66	14.03	13.35	13.77	14.14	15.80	12.04
DSO	days	33.79	30.05	26.61	30.34	32.73	29.88	28.27	31.84	27.67	28.64	27.16	28.56	29.01	28.84	26.02	27.34	26.50	25.81	23.10	30.32

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.80
= 33.79

Days of sales outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO value indicates faster collections and better liquidity management.

Analyzing Xcel Energy, Inc.'s DSO over the past eight quarters, we observe a decreasing trend from Q4 2022 to Q2 2023, followed by a slight increase in Q3 2023. In Q4 2023, the DSO stands at 55.70 days, which is relatively higher compared to the previous quarter but still lower than the DSO recorded in Q4 2022.

The lower DSO values in Q2 and Q3 2023 reflect efficient revenue collection practices by the company, potentially indicating effective credit and collection policies. However, the increase in DSO in Q4 2023 may suggest a slower collection of receivables during this period compared to the preceding quarters.

Overall, while Xcel Energy has shown improvement in managing its DSO over the analyzed quarters, it is essential for the company to monitor and control its DSO to ensure timely collection of revenues and maintain healthy cash flow levels.