Coterra Energy Inc (CTRA)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.84	6.38	3.08	6.64	9.88
DSO	days	62.46	57.18	118.53	55.00	36.93

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.84
= 62.46

Coterra Energy Inc's Days Sales Outstanding (DSO) measures how long, on average, it takes for the company to collect payment from customers after a sale is made. Looking at the trend over the past five years, we observe fluctuations in DSO. In 2021, the DSO was significantly high at 109.74 days, indicating the company took longer to collect receivables. However, this improved in 2022 and 2023, with DSO dropping to 52.83 days and 55.18 days respectively. These lower numbers suggest a more efficient collection process and quicker conversion of sales into cash. Overall, the downward trend in DSO from 2019 to 2023 reflects improvements in Coterra Energy Inc's receivables management, potentially leading to better cash flow and liquidity. It would be beneficial for the company to continue monitoring this metric to ensure sustainable and efficient working capital management in the future.