Magnolia Oil & Gas Corp (MGY)

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		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	8.91	7.97	7.05	7.93
DSO	days	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	40.98	45.81	51.78	46.01

December 31, 2023 calculation

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

Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is able to collect cash from its customers more quickly, which is generally seen as positive.

Analyzing the DSO trend of Magnolia Oil & Gas Corp over the past few quarters, we observe fluctuations in the number of days it takes the company to collect its receivables.

In the most recent quarter, as of December 31, 2023, the DSO stood at 56.43 days, which is higher compared to the previous quarter (September 30, 2023) at 54.39 days. This suggests that the company took slightly longer to collect its receivables in the latest period.

Looking further back, we see a significant decrease in DSO in the second quarter of 2023 (June 30, 2023) to 35.30 days from 61.03 days in the first quarter of 2023 (March 31, 2023). A lower DSO in that quarter indicates improved efficiency in collecting receivables.

Comparing the current DSO to the same quarter in the previous year, there has been some fluctuation, reflecting changes in the company's operations and collection efforts.

Overall, it is important for Magnolia Oil & Gas Corp to monitor its DSO closely to ensure timely collection of receivables and efficient management of working capital. fluctuations in DSO can provide insights into the company's credit and collection policies, as well as the payment behavior of its customers.