Marathon Oil Corporation (MRO)

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		5.81	4.70	5.54	6.55	7.01	5.97	4.83	4.26	4.79	4.21	3.77	3.18	4.13	5.40	6.55	6.62	4.63	4.82	5.11	5.36
DSO	days	62.79	77.67	65.85	55.69	52.05	61.17	75.51	85.66	76.24	86.68	96.87	114.85	88.35	67.62	55.71	55.14	78.91	75.67	71.41	68.10

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.81
= 62.79

The Days of Sales Outstanding (DSO) for Marathon Oil Corporation have exhibited fluctuations over the past eight quarters. In Q4 2023, the DSO was 65.63 days, showing an improvement from the previous quarter's 81.46 days. This indicates that the company took fewer days to collect its accounts receivable in Q4 2023 compared to Q3 2023.

Looking at the trend over the past year, we observe that the DSO peaked in Q2 2022 at 85.16 days and has generally been on a downward trajectory since then. This suggests that Marathon Oil has been more efficient in collecting payments from customers, which is a positive sign for the company's liquidity and cash flow management.

However, it is essential to monitor DSO closely as it can be influenced by various factors such as sales terms, industry trends, and economic conditions. Companies should aim to strike a balance in managing DSO to ensure timely cash inflows while maintaining positive relationships with customers.