Coterra Energy Inc (CTRA)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		4.94	5.84	6.38	3.08	6.64
DSO	days	73.83	62.46	57.18	118.53	55.00

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.94
= 73.83

Days of Sales Outstanding (DSO) is a crucial financial ratio for Coterra Energy Inc, reflecting how long it takes on average for the company to collect its accounts receivable. Looking at the trend over the past five years, Coterra Energy Inc's DSO has fluctuated.

As of December 31, 2020, the DSO stood at 55.00 days, indicating that the company was efficient in collecting payments from customers. However, there was a significant increase in DSO by the end of 2021, reaching 118.53 days, which could suggest potential issues with receivables management or changes in customer payment behaviors.

The DSO decreased in 2022 to 57.18 days, showing some improvement in collections efficiency. By the end of 2023, the DSO slightly increased to 62.46 days, indicating a longer collection period compared to the previous year.

In the latest data available, as of December 31, 2024, the DSO increased to 73.83 days, signaling a potential slowdown in collections or challenges in the accounts receivable process.

Overall, Coterra Energy Inc should continue monitoring its DSO closely to ensure efficient management of accounts receivable and timely collection of payments to maintain healthy cash flows and liquidity. Additional analysis of customer payment terms and collection strategies may be needed to address any issues highlighted by the trend in DSO.