Diamondback Energy Inc (FANG)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.93 | 9.59 | 10.13 | 6.44 | 6.45 | |
| DSO | days | 36.75 | 38.08 | 36.03 | 56.70 | 56.63 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.93
= 36.75
The Days Sales Outstanding (DSO) for Diamondback Energy Inc has shown a fluctuating trend over the past five years. In 2023, the company's DSO decreased to 36.75 days from 38.08 days in 2022, indicating that the company is collecting its accounts receivable more efficiently. This improvement suggests that Diamondback Energy has been able to convert its sales into cash at a faster rate, potentially improving its liquidity position and reducing the risk of bad debts.
Comparing to the previous years, the DSO in 2021 was 36.03 days, showing a slight decrease from 2020, where it was significantly higher at 56.70 days. This reduction in DSO over the years indicates that Diamondback Energy has managed its accounts receivable more effectively, resulting in a shorter period for collecting payments from customers.
Moreover, compared to 2019 when the DSO was 56.63 days, the current DSO level reflects a considerable improvement in the company's receivables management practices. Overall, the declining trend in DSO observed in recent years demonstrates Diamondback Energy's focus on optimizing its working capital efficiency and potentially enhancing its overall financial performance.
Peer comparison
Dec 31, 2023