Liberty Oilfield Services Inc (LBRT)

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		25.13	23.54	24.12	6.30	7.08	5.22	5.45	5.27	6.06	4.71	3.38	3.07	2.85	7.66	21.51	5.74	7.87	8.38	6.09	6.83
DSO	days	14.52	15.51	15.13	57.90	51.55	69.93	67.00	69.27	60.19	77.56	108.01	119.01	127.99	47.65	16.97	63.55	46.38	43.53	59.94	53.41

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 25.13
= 14.52

To analyze Liberty Energy Inc's days of sales outstanding (DSO) trend, we consider the historical data provided. DSO measures how long it takes for a company to collect payments from its customers after making a sale.

In Q4 2023, the DSO decreased to 30.64 days from the previous quarter's 38.77 days. This suggests that the company improved its accounts receivable collection efficiency, indicating a potentially more rigorous credit and collection policy.

Comparing Q4 2023 to the same period in the prior year, there was a notable decrease from 36.09 days in Q4 2022 to 30.64 days in Q4 2023. This improvement indicates that Liberty Energy Inc has been managing its receivables more effectively over time.

Looking at a broader trend, there was a general downward trajectory in DSO from Q1 2022 to Q4 2023. This consistent decrease reflects the company's efforts in enhancing its receivables management processes and potentially tightening credit terms to ensure timely collection of payments.

Overall, the trend in Liberty Energy Inc's DSO demonstrates a positive pattern of improving efficiency in collecting payments from customers, which may lead to better cash flow management and financial performance in the future. Monitoring this metric going forward will be important to ensure continued effectiveness in accounts receivable management.