APA Corporation (APA)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		—	1.32	5.44	4.74	6.17
DSO	days	—	277.35	67.06	76.93	59.15

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

To analyze APA Corporation's Days Sales Outstanding (DSO) over the last five years, we observe a fluctuating trend in the efficiency of the company's accounts receivable collection. The DSO metric measures the average number of days it takes for a company to collect payment after making a sale.

In 2023, the DSO is 70.83 days, indicating a deterioration in collecting payments from customers compared to the previous year. This suggests a potential slowdown in accounts receivable turnover efficiency.

In 2022, the DSO improved significantly to 47.68 days compared to 2021, indicating a more efficient collection process. This sharp decrease in DSO may signify improved credit policies or more effective collection practices.

In 2021, the DSO increased to 61.95 days from 2020, suggesting a slower collection of receivables, possibly due to economic factors impacting customer payment behavior.

In 2020, the DSO was 73.67 days, reflecting a longer collection period compared to 2019. This increase may indicate challenges in collecting payments promptly or changes in customer payment terms.

In 2019, the DSO stood at 60.87 days, showing a relatively stable collection period compared to the years following it.

Overall, APA Corporation's DSO shows variability over the years, indicating fluctuations in accounts receivable management efficiency. It is essential for the company to closely monitor DSO trends and implement strategies to optimize accounts receivable collection for improved cash flow and financial performance.