Northern Oil & Gas Inc (NOG)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.80	5.78	2.57	7.78	4.35
DSO	days	62.98	63.14	142.18	46.94	83.82

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.80
= 62.98

Northern Oil and Gas Inc.'s Days of Sales Outstanding (DSO) measures how long it takes the company to collect payments from its customers. The trend in DSO over the past five years indicates fluctuations in the company's collection efficiency. In 2023, the DSO decreased slightly to 62.98 days compared to 63.14 days in 2022. This suggests that the company was able to collect revenue more quickly from its customers in 2023.

The significant improvement in DSO from 142.18 days in 2021 to 46.94 days in 2020 is noteworthy, indicating a more efficient collection process during that period. However, there was a spike in DSO to 83.82 days in 2019, suggesting a delay in collecting payments.

Overall, Northern Oil and Gas Inc. has shown varying levels of effectiveness in managing its accounts receivables over the past five years. The recent decline in DSO in 2023 is a positive sign, but the company should continue to monitor and improve its collection processes to maintain efficient cash flow management.