Coterra Energy Inc (CTRA)

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		5.84	8.89	12.48	11.81	6.38	5.57	3.87	4.01	3.08	4.94	7.47	7.69	6.64	5.01	5.89	6.20	9.89	14.58	13.29	10.68
DSO	days	62.46	41.05	29.25	30.92	57.18	65.49	94.36	91.02	118.53	73.93	48.88	47.49	54.97	72.83	61.98	58.90	36.92	25.04	27.46	34.19

December 31, 2023 calculation

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

Coterra Energy Inc's Days Sales Outstanding (DSO) is a measure of how long it takes the company to collect revenue from its credit sales. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable as it improves cash flow and liquidity.

Analyzing the trend in Coterra Energy Inc's DSO over the past eight quarters, we observe fluctuations in the values. In Q2 2023, the DSO was at its lowest point at 29.25 days, indicating that the company was efficient in collecting payments from customers during that period. This was a significant improvement compared to the previous quarters. However, in Q3 2022, the DSO peaked at 89.46 days, reflecting a delay in collecting receivables, which may have impacted the company's cash flow.

The decreasing trend in DSO from Q3 2022 to Q2 2023 suggests that Coterra Energy Inc has been managing its accounts receivable more effectively, possibly by implementing better credit policies or enhancing collection procedures. However, it is essential to monitor future trends to ensure that the company maintains efficient cash conversion cycles and working capital management.

Overall, Coterra Energy Inc's DSO has shown variability over the quarters, emphasizing the importance of continuous monitoring and improvement in receivables management practices to enhance overall financial performance and liquidity.