Magnolia Oil & Gas Corp (MGY)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.47	9.92	7.20	6.64	8.91
DSO	days	56.43	36.78	50.69	55.00	40.98

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.47
= 56.43

To analyze Magnolia Oil & Gas Corp's Days Sales Outstanding (DSO) over the past five years, we observe the following trends:

- In 2023, the DSO increased to 56.43 days from 36.78 days in 2022, indicating that the company is taking longer to collect its accounts receivable compared to the previous year.
- The DSO in 2021 was 50.69 days, slightly higher than 2020 and significantly higher than 2019 when it was 40.98 days. This suggests a possible deterioration in the efficiency of Magnolia's accounts receivable collection process in recent years.
- The highest DSO was recorded in 2020 at 55.00 days, indicating a temporary delay in collecting sales revenue during that period.

Overall, Magnolia Oil & Gas Corp's DSO has shown some volatility over the past five years, with an increase in 2023 signaling a potential issue with accounts receivable management. Further investigation into the reasons for the increase in DSO in 2023 may be warranted to address any underlying issues and improve the company's cash flow and working capital management.