Permian Resources Corporation (PR)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.47	7.49	11.67	10.82	8.69
DSO	days	56.44	48.71	31.29	33.72	41.99

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.47
= 56.44

Permian Resources Corp's days of sales outstanding (DSO) has shown some fluctuations over the past five years.

In 2023, the DSO increased to 56.26 days from 48.44 days in 2022, which indicates that the company is taking longer to collect its accounts receivable compared to the previous year. This may suggest potential issues with credit policies or collection processes.

The DSO in 2021 was at its lowest at 25.27 days, demonstrating an efficient collection of receivables and strong cash flow management. However, there was an increase in DSO in 2022 and 2023, which could signal a deterioration in the company's ability to quickly convert sales into cash.

Comparing to 2020 and 2019, where the DSO was 34.31 days and 39.39 days respectively, there has been an improvement in collections efficiency in recent years. However, the recent increase in DSO should be monitored closely to ensure efficient working capital management and timely cash flow generation.

Overall, the trend in Permian Resources Corp's DSO over the past five years suggests some variability in the company's accounts receivable management, highlighting the importance of consistently evaluating and optimizing the collection process.