Civitas Resources Inc (CIVI)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		7.88	8.81	8.09	6.42	6.51	5.35	15.44	16.17	10.99	10.29	6.16	4.08	2.55	5.52	4.48	6.08	6.58	8.29	9.91	18.16
DSO	days	46.31	41.41	45.13	56.84	56.03	68.22	23.64	22.57	33.21	35.48	59.26	89.44	143.24	66.13	81.39	60.05	55.47	44.02	36.83	20.10

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.88
= 46.31

The days sales outstanding (DSO) for Civitas Resources Inc has fluctuated over the years, indicating varying efficiency in collecting accounts receivable.

From March 31, 2020, to December 31, 2021, the DSO steadily increased from 20.10 days to 143.24 days, suggesting a potential deterioration in the company's credit policies or challenges in receivables management during this period.

However, there was a notable improvement in DSO by June 30, 2022, as it decreased to 33.21 days. This trend continued positively until September 30, 2023, with a low of 22.57 days. This improvement suggests enhanced efficiency in collecting payments from customers and managing credit risk.

The DSO increased by December 31, 2023, to 56.03 days, but stayed relatively stable in the subsequent quarters. Overall, Civitas Resources Inc should monitor its DSO closely to ensure optimal management of accounts receivable and maintain a balance between sales growth and timely collection of payments.