APA Corporation (APA)

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		—	—	6.88	7.02	7.40	4.61	4.86	4.79	4.20	4.22	3.98	2.91	4.74	5.17	5.74	7.19	6.03	6.05	6.33	6.14
DSO	days	—	—	53.02	51.98	49.32	79.19	75.12	76.17	86.87	86.54	91.70	125.30	76.93	70.66	63.58	50.79	60.57	60.29	57.63	59.48

December 31, 2023 calculation

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

To analyze APA Corporation's Days of Sales Outstanding (DSO) trend, we observe a fluctuating pattern in the DSO ratio over the past eight quarters. The DSO measures the average number of days it takes for the company to collect its accounts receivable, indicating the efficiency of its collection processes.

In Q4 2023, the DSO stands at 70.83 days, a slight decrease from the previous quarter's 73.28 days, but higher than the year-ago period. This suggests that the company took longer to collect its receivables in the current quarter.

Comparing Q4 2023 to Q1 2023, the DSO has increased significantly from 52.46 days to 70.83 days, indicating a deterioration in collecting receivables efficiency. The DSO in Q4 2023 is also higher than the DSO recorded in Q4 2022, signaling a potential prolonged collection period.

Furthermore, the DSO surpassed the levels seen in the previous two years, with Q4 2023 continuing the trend of elevated collection periods. This could raise concerns regarding the company's credit policies, customer payment behaviors, or operational effectiveness in managing receivables.

Overall, the fluctuating and increasing trend in APA Corporation's DSO over the past eight quarters suggests a potential inefficiency in collecting accounts receivable, which may require further investigation and strategic adjustments to improve cash flow management and overall financial performance.