Coterra Energy Inc (CTRA)

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		4.94	7.34	6.11	6.34	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
DSO	days	73.83	49.73	59.76	57.54	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

December 31, 2024 calculation

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

Based on the provided data for Coterra Energy Inc's Days Sales Outstanding (DSO) over a period from March 31, 2020, to December 31, 2024, the company's collection efficiency can be analyzed.

The DSO is a measure of the average number of days a company takes to collect revenue after a sale has been made. A lower DSO indicates that a company is collecting its accounts receivables more quickly, which is generally more favorable as it signifies efficient cash flow management.

Coterra Energy Inc's DSO fluctuated over the period under review. From March 31, 2020, to December 31, 2020, the DSO remained relatively stable between around 55 to 75 days. However, there was a notable increase in DSO in the fourth quarter of 2021, reaching 118.53 days, which could indicate a delay in collecting receivables during that period.

In the subsequent quarters, Coterra Energy Inc managed to reduce its DSO, with a significant improvement seen in the first quarter of 2023, where the DSO dropped to 30.92 days. This sharp decline suggests a more efficient collection process during that period.

From June 30, 2023, to December 31, 2024, the DSO fluctuated within a narrower range compared to previous periods, indicating a relatively stable collection efficiency for Coterra Energy Inc during this time frame.

Overall, while there were fluctuations in Coterra Energy Inc's DSO over the period analyzed, the company demonstrated improvements in its collection efficiency, particularly in the first quarter of 2023. Monitoring DSO can provide insights into the company's ability to manage its accounts receivables effectively and ensure a healthy cash flow position.