Patterson-UTI Energy Inc (PTEN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.10 | 4.63 | 3.70 | 6.62 | 6.89 | |
| DSO | days | 88.93 | 78.86 | 98.74 | 55.12 | 52.96 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.10
= 88.93
Patterson-UTI Energy Inc's days of sales outstanding (DSO) have fluctuated over the past five years, ranging from 51.13 days in 2019 to 95.79 days in 2021. The DSO indicates the average number of days it takes for the company to collect revenue after making a sale.
In 2023, the DSO increased to 87.85 days from 78.02 days in 2022, suggesting a slower collection of sales proceeds compared to the previous year. This increase may indicate possible challenges in collecting payments from customers promptly, which could impact the company's cash flow and liquidity.
Comparing the DSO to 2020 and 2019 data, where the DSO was 53.45 days and 51.13 days respectively, there has been a significant increase in the average collection period in recent years. This trend warrants further investigation into the company's credit policies, customer payment behavior, and overall efficiency in receivables management.
Overall, the upward trend in Patterson-UTI Energy Inc's DSO over the years indicates a potential need for the company to focus on improving its receivables management practices to enhance cash flow and operational efficiency.
Peer comparison
Dec 31, 2023