Range Resources Corp (RRC)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		12.29	8.62	6.21	7.79	10.36
DSO	days	29.71	42.34	58.77	46.84	35.23

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.29
= 29.71

Range Resources Corp's Days of Sales Outstanding (DSO) has shown a fluctuating trend over the past five years. In 2023, the DSO stood at 30.58 days, indicating an improvement in the collection efficiency compared to the prior year's 44.50 days. This suggests that the company took fewer days to collect its accounts receivable in 2023.

Analyzing further, in 2022, the DSO increased significantly to 44.50 days from 201 days in 2021, implying that it took the company longer to convert its sales into cash during that period. In 2021, the DSO was at its highest level at 62.44 days, which may raise concerns regarding the company's ability to manage its receivables effectively.

In 2020, the DSO decreased to 46.84 days from 35.23 days in 2019. This improvement in collection efficiency suggests that the company was able to collect its accounts receivable more promptly in 2020.

Overall, the trend in Range Resources Corp's DSO indicates variability in the efficiency of its credit and collection policies over the past five years, with fluctuations in the speed of collecting receivables. A lower DSO is generally preferable as it signifies faster conversion of sales into cash, thereby improving liquidity and working capital management.