Chord Energy Corp (CHRD)

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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Receivables turnover		4.10	3.80	5.18	4.89	5.30	4.98	5.62	5.20	4.78	5.92	4.39	4.05	6.07	7.10	8.14	5.22	5.38	5.45	4.76	5.33
DSO	days	89.11	95.99	70.50	74.71	68.92	73.30	64.98	70.16	76.29	61.63	83.07	90.01	60.17	51.43	44.87	69.97	67.88	67.00	76.70	68.48

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.10
= 89.11

DSO, or days of sales outstanding, provides insight into how long it takes for a company to collect cash from its credit sales. A decreasing trend in DSO over time generally indicates improved efficiency in collecting receivables. In the case of Chord Energy Corp, we observe fluctuations in DSO over the past eight quarters.

In Q4 2023, the DSO decreased to 88.34 days from 95.38 days in Q3 2023, which could suggest a more efficient collection process during this period. However, it is important to note that the DSO in Q4 2023 is still higher than in Q1 and Q2 of the same year, indicating potential challenges in collecting sales receivables during the end of the fiscal year.

Comparing the latest DSO to the figures from the previous year, we see a fluctuating pattern with peaks and troughs throughout the quarters. While the DSO in Q4 2023 is lower than in Q1 and Q2 2022, it remains higher compared to Q3 2022. This erratic trend may indicate inconsistencies in the collection process or changes in customer payment behaviors.

Overall, Chord Energy Corp should continue to monitor its DSO closely and assess the effectiveness of its credit and collection policies to ensure timely cash inflows and efficient management of working capital.