ProPetro Holding Corp (PUMP)

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		6.89	6.45	6.34	5.07	6.19	5.51	5.93	5.70	6.74	5.16	4.72	4.91	9.11	11.07	22.18	8.44	9.55	7.32	5.14	5.15
DSO	days	53.00	56.62	57.62	71.98	58.96	66.28	61.57	64.03	54.18	70.79	77.32	74.41	40.08	32.98	16.45	43.26	38.20	49.87	70.97	70.89

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.89
= 53.00

Days Sales Outstanding (DSO) is a financial ratio that indicates the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO typically indicates that a company is collecting its accounts receivable more quickly, which is considered favorable.

Analyzing ProPetro Holding Corp's DSO over the past few quarters reveals fluctuations in its collection efficiency. The DSO has ranged from 16.45 days to 77.32 days during the period under review. A lower DSO at the end of the period suggests that the company is improving its collections process and converting sales into cash faster.

However, it is important to note the seasonality and specific industry factors that may influence DSO. In this case, ProPetro Holding Corp's DSO has shown some volatility, with spikes in DSO in certain quarters indicating potential delays or difficulties in collecting receivables.

Overall, a downward trend in DSO over time would be indicative of an improvement in the company's accounts receivable management and cash flow generation. Investors and analysts may monitor DSO closely as it can provide insights into the company's liquidity and operational efficiency.