Permian Resources Corporation (PR)

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	7.32	8.80	8.45	7.49	7.38	8.44	6.92	11.67	6.00	5.58	7.74	10.82	14.11	12.64	13.60	8.69	6.09	7.11	7.55
DSO	days	56.44	49.83	41.47	43.20	48.71	49.44	43.24	52.72	31.29	60.82	65.43	47.16	33.72	25.87	28.87	26.83	41.99	59.90	51.32	48.37

December 31, 2023 calculation

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

Permian Resources Corp's Days of Sales Outstanding (DSO) measure how long, on average, it takes for the company to collect payments from its customers. A lower DSO indicates faster collection of accounts receivable, which is generally preferred as it improves cash flow. Looking at the trend over the past quarters, we can see that the DSO has been fluctuating.

In Q1 2022, the DSO was relatively high at 40.62 days but decreased significantly in Q2 2022 to 36.27 days. However, there was an increase in Q3 2022 to 51.54 days before decreasing again in Q4 2022 to 48.44 days. This fluctuating pattern continued into 2023, with the DSO fluctuating between mid-40s to mid-50s.

Overall, it is essential for Permian Resources Corp to closely monitor and manage its DSO to ensure efficient cash flow management. The company may benefit from implementing strategies to streamline the accounts receivable collection process and improve its credit policies to reduce the DSO and optimize working capital.