Comstock Resources Inc (CRK)

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		6.61	9.84	13.63	13.06	5.30	3.86	4.26	6.60	5.65	4.97	4.93	4.29	5.86	8.27	8.59	7.57	4.62	4.42	5.19	3.23
DSO	days	55.25	37.11	26.79	27.95	68.88	94.57	85.65	55.34	64.63	73.48	74.05	85.17	62.30	44.15	42.51	48.21	78.97	82.59	70.38	112.91

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.61
= 55.25

The days of sales outstanding (DSO) is a crucial financial ratio that indicates the average number of days it takes for a company to collect revenue after making a sale. A lower DSO suggests that a company is efficient in collecting its accounts receivable, while a higher DSO may indicate potential issues with credit policies or collection processes.

Analyzing Comstock Resources, Inc.'s DSO over the past eight quarters reveals fluctuations in the efficiency of their accounts receivable management. In Q4 2023, the DSO was 55.31 days, which increased significantly from the previous quarter's 36.96 days. This suggests that the company took longer to collect its sales during this period.

Comparing Q3 and Q4 of 2023, an increase in DSO may indicate that Comstock Resources, Inc. faced challenges in collecting payments from customers, potentially impacting their cash flow and liquidity. However, it is essential to consider seasonal factors or specific industry trends that could have influenced this change.

Looking at the historical trend of DSO, there have been instances of both improvements and deteriorations in collection efficiency. For example, in Q2 2023, the DSO was at its lowest point at 24.12 days, indicating a prompt collection of sales, but this efficiency was not sustained in the subsequent quarters.

Overall, a detailed analysis of Comstock Resources, Inc.'s DSO trend can provide insights into their accounts receivable management practices and help identify areas where improvements may be needed to optimize cash flow and enhance overall financial performance.