Devon Energy Corporation (DVN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		8.27	9.77	7.02	7.07	6.14
DSO	days	44.16	37.36	52.00	51.64	59.44

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.27
= 44.16

To analyze the Days of Sales Outstanding (DSO) of Devon Energy Corp., we evaluate the trend of this ratio over the past five years.

In 2019, the company had a DSO of 48.82 days, which decreased to 58.59 days in 2020, indicating a deterioration in the collection period for accounts receivable. However, this trend reversed in the subsequent years, with a significant improvement in DSO to 48.62 days in 2021, further decreasing to 33.65 days in 2022, and then to 37.63 days in 2023.

The decreasing trend in DSO from 2020 to 2023 signifies an enhancement in the company's efficiency in collecting receivables, potentially indicating effective credit management policies or improved customer payment practices. A lower DSO implies that Devon Energy Corp. is collecting payments from customers more quickly, which can positively impact cash flows and working capital management.

Overall, the declining trend in DSO for Devon Energy Corp. reflects positively on the company's ability to manage its accounts receivable effectively and efficiently, potentially contributing to improved liquidity and financial performance.