Liberty Oilfield Services Inc (LBRT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 25.13 | 7.08 | 6.06 | 2.85 | 7.87 | |
| DSO | days | 14.52 | 51.55 | 60.19 | 127.99 | 46.38 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 25.13
= 14.52
The days of sales outstanding (DSO) for Liberty Energy Inc have shown fluctuations over the past five years. The DSO has decreased from 92.38 days in 2020 to 30.64 days in 2023, indicating a significant improvement in the collection of accounts receivable. This trend suggests that the company has become more efficient in converting its accounts receivable into cash, which is a positive sign for its financial health. The reduction in DSO can be attributed to better credit management practices, improved collection processes, or a more favorable customer base. Overall, the declining trend in DSO reflects positively on Liberty Energy Inc's ability to manage its working capital effectively and optimize its cash flow.
Peer comparison
Dec 31, 2023