Liberty Oilfield Services Inc (LBRT)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 23.30 | 25.13 | 7.08 | 6.06 | 2.85 | |
| DSO | days | 15.67 | 14.52 | 51.55 | 60.19 | 127.99 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 23.30
= 15.67
Based on the data provided, Liberty Oilfield Services Inc has shown a significant improvement in its Days of Sales Outstanding (DSO) over the period from December 31, 2020, to December 31, 2024.
In December 2020, the company's DSO was quite high at 127.99 days, indicating that on average, it took Liberty Oilfield Services Inc almost 128 days to collect revenue from its customers.
However, over the subsequent years, there was a noticeable decrease in DSO, reflecting more efficient management of accounts receivable. By December 2024, the DSO had reduced to 15.67 days, signifying a remarkable enhancement in the company's ability to collect payments promptly.
This improvement in DSO suggests that Liberty Oilfield Services Inc has potentially enhanced its credit and collections management processes, enabling it to convert sales into cash faster and improve its overall liquidity position. Such a trend may indicate stronger working capital management and potentially more stable cash flows for the company.
Peer comparison
Dec 31, 2024