Civitas Resources Inc (CIVI)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		8.05	6.51	10.99	2.55	6.58
DSO	days	45.33	56.03	33.21	143.24	55.47

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.05
= 45.33

Based on the available data for Civitas Resources Inc, the Days Sales Outstanding (DSO) measure indicates the average number of days it takes for the company to collect its accounts receivable.

Analyzing the trend over the past five years, there are varying levels of DSO for Civitas Resources Inc. In December 31, 2020, the DSO stood at 55.47 days, which then increased substantially to 143.24 days by December 31, 2021. This sharp increase suggests potential challenges in collecting receivables efficiently during that period.

However, the company managed to significantly improve its collection efficiency by reducing the DSO to 33.21 days by December 31, 2022, indicating a more prompt collection of accounts receivable compared to the previous year.

Subsequently, by December 31, 2023, the DSO increased slightly to 56.03 days, nearing the DSO level seen in 2020. Finally, by December 31, 2024, the DSO decreased to 45.33 days, still higher than the efficient collection period observed in 2022.

Overall, the fluctuation in the Days Sales Outstanding for Civitas Resources Inc highlights the company's effectiveness in managing its accounts receivable and collecting payments from customers in a timely manner. Further analysis incorporating industry benchmarks and comparison to competitors may provide additional insights into the company's performance in this area.