Patterson-UTI Energy Inc (PTEN)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.82 | 4.15 | 4.63 | 3.70 | 6.62 | |
| DSO | days | 53.52 | 87.85 | 78.86 | 98.74 | 55.12 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.82
= 53.52
Based on the data provided, Patterson-UTI Energy Inc's Days Sales Outstanding (DSO) has exhibited varying trends over the past five years.
- In December 2020, the DSO was 55.12 days, indicating that, on average, it took the company approximately 55 days to collect its accounts receivable.
- By December 2021, the DSO increased significantly to 98.74 days, suggesting a delay in the collection of receivables. This could be a cause for concern as it indicates potential cash flow challenges or inefficiencies in the company's credit and collection processes.
- The DSO improved slightly by December 2022, standing at 78.86 days, but remained elevated compared to the 2020 level.
- In December 2023, the DSO rose slightly to 87.85 days, showing that the company continued to face challenges in collecting receivables efficiently.
- However, by December 2024, the DSO decreased significantly to 53.52 days, reaching a level even lower than the 2020 figure. This reduction may suggest improvements in the company's receivables management practices and operational efficiency.
Overall, the fluctuating DSO levels indicate that Patterson-UTI Energy Inc has experienced variations in its accounts receivable collection efficiency over the years. It is crucial for the company to closely monitor and manage its DSO to ensure healthy cash flow and sustainable operations.
Peer comparison
Dec 31, 2024