SM Energy Co (SM)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		10.27	14.40	10.61	6.94	8.61
DSO	days	35.54	25.35	34.40	52.63	42.40

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.27
= 35.54

SM Energy Co's Days Sales Outstanding (DSO) is a metric used to evaluate how efficiently the company is collecting its accounts receivable. A lower DSO indicates that the company is collecting revenue from customers more quickly.

Looking at the historical trend, we observe fluctuations in SM Energy Co's DSO over the past five years. In 2023, the DSO stood at 35.54 days, which represents an increase from the previous year's DSO of 25.35 days. This suggests that the company took longer to collect payments from customers in 2023 compared to 2022.

Comparing the DSO to earlier years, we note that in 2021, SM Energy Co had a DSO of 34.40 days, slightly higher than in 2019 but lower than in 2020. The highest DSO in the period was recorded in 2020 at 52.63 days, indicating a challenge in collecting receivables efficiently that year.

Overall, the trend in SM Energy Co's DSO shows some variability across the years, with fluctuations in the time taken to convert sales into cash. It is important for the company to monitor this metric closely to ensure effective management of accounts receivable and optimize cash flow operations.