Magnolia Oil & Gas Corp (MGY)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		8.90	9.63	7.38	6.32	6.47	6.71	10.34	10.72	9.92	8.08	5.98	6.94	7.20	6.93	6.19	5.31	6.64	10.14	12.30	11.64
DSO	days	41.02	37.90	49.47	57.79	56.43	54.39	35.30	34.04	36.78	45.19	61.03	52.58	50.69	52.63	58.95	68.78	55.00	36.00	29.66	31.36

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.90
= 41.02

Days of Sales Outstanding (DSO) is a measure used to evaluate how efficiently a company is managing its accounts receivable. It indicates the average number of days it takes for a company to collect payment after a sale has been made.

Analyzing the DSO trend of Magnolia Oil & Gas Corp over the given period shows fluctuations in the collection period. The DSO ranged from as low as 29.66 days to as high as 68.78 days during the analyzed period, with a general upward trend observed.

The company's DSO increased significantly from 31.36 days as of March 31, 2020, to 68.78 days by March 31, 2021, which may suggest challenges in collecting receivables or changes in credit policies impacting cash flows. Subsequently, the DSO showed some fluctuations but remained relatively elevated compared to the initial period.

However, a positive trend can be observed from December 31, 2021, to December 31, 2024, as the DSO decreased significantly from 50.69 days to 41.02 days. This improvement may indicate effective accounts receivable management or enhanced collection practices during this period.

Overall, monitoring the DSO trend of Magnolia Oil & Gas Corp is crucial for assessing its efficiency in collecting payments from customers and identifying any potential liquidity issues or improvements in working capital management.