Chesapeake Energy Corp (CHK)

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		14.71	15.91	18.70	16.41	8.17	6.09	4.67	4.05	4.98	4.57	5.63	5.12	7.04	8.75	13.73	11.71	8.68	9.68	9.60	8.11
DSO	days	24.82	22.94	19.52	22.24	44.70	59.92	78.10	90.08	73.34	79.92	64.88	71.26	51.85	41.69	26.58	31.17	42.04	37.69	38.03	44.99

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.71
= 24.82

The Days of Sales Outstanding (DSO) is a measure that indicates how long it takes for a company to collect payment after making a sale. A lower DSO implies that the company is collecting payments more quickly, while a higher DSO may suggest potential cash flow challenges or inefficiencies in the collection process.

Analyzing the DSO trend for Chesapeake Energy Corp over the past five years reveals fluctuations in the collection period. In the latest period, as of December 31, 2023, the DSO stood at 24.82 days, showing an improvement compared to the previous quarter at 22.94 days. This reduction in DSO may indicate that the company has been able to collect payments more efficiently in the most recent periods.

Looking back further, there was a significant increase in DSO at the end of 2022, reaching 44.70 days, followed by even higher levels in the preceding quarters. This escalation in DSO could signal difficulties in collecting payments promptly, potentially impacting cash flow and liquidity.

Comparing these figures with historical data, we observe fluctuations in DSO levels over the past five years, indicating variations in the company's effectiveness in managing accounts receivable and collecting payments from customers. It is essential for Chesapeake Energy Corp to monitor and actively manage its DSO to ensure efficient cash flow management and financial stability.