Ovintiv Inc (OVV)

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
Receivables turnover		4.50	9.53	13.92	14.21	4.47	8.99	6.23	5.48	3.65	5.67	5.20	4.69	3.11	6.97
DSO	days	81.16	38.31	26.23	25.68	81.70	40.61	58.57	66.59	99.96	64.40	70.16	77.88	117.35	52.39

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.50
= 81.16

The Days Sales Outstanding (DSO) ratio for Ovintiv Inc has shown fluctuation over the past eight quarters. In Q4 2023, the company's DSO was 49.25 days, slightly lower than the DSO of 51.36 days in Q3 2023. This indicates that Ovintiv took around 49 days on average to collect its accounts receivable in the fourth quarter of 2023.

The DSO spiked significantly in Q2 2023, reaching 39.10 days, which may suggest potential challenges in receivables collection efficiency during that period. Interestingly, in Q1 2023 and the prior quarters, the DSO was remarkably low, with almost immediate collection evident in Q1 2023 and Q4 2022.

Comparing the recent DSO figures to those of the same quarters in the prior year, there is a notable increase in the number of days it takes to collect receivables. For instance, in Q4 2023, the DSO was substantially higher than in Q4 2022, indicating a potential delay in collecting payments from customers.

Overall, the trend in Ovintiv's DSO over the past eight quarters suggests some variability in the company's ability to efficiently collect accounts receivable. Further analysis and monitoring of this ratio could provide insights into the company's credit policies, collection processes, and overall financial performance.