Diamondback Energy Inc (FANG)

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		9.93	8.25	10.30	9.72	9.59	12.26	8.78	7.43	10.13	6.84	6.31	4.90	6.44	8.05	7.70	9.92	6.45	6.49	5.91	5.53
DSO	days	36.75	44.26	35.44	37.54	38.08	29.78	41.56	49.10	36.03	53.39	57.84	74.46	56.70	45.34	47.41	36.78	56.63	56.22	61.77	65.99

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.93
= 36.75

Diamondback Energy Inc's Days of Sales Outstanding (DSO) have fluctuated over the past eight quarters. In Q1 2022, the DSO was 49.10 days, indicating that on average, it took the company 49.10 days to collect its accounts receivable. Subsequently, the DSO decreased in Q2 2022 to 41.56 days and then further dropped to 29.78 days in Q3 2022, suggesting an improvement in the company's collection efficiency.

However, the trend reversed in Q4 2022, with the DSO increasing to 38.08 days, and this upward trend continued into Q1 2023 with a further increase to 37.54 days. The DSO decreased slightly in Q2 2023 to 35.44 days but then increased again in Q3 2023 to 44.26 days, indicating a potential delay in collecting accounts receivable.

In Q4 2023, the DSO decreased to 36.75 days, showing a slight improvement compared to the previous quarter but still higher than the levels observed in Q2 2022 and Q3 2022. Overall, Diamondback Energy Inc should continue to monitor its DSO closely to ensure efficient management of its accounts receivable and optimize cash flow.