SM Energy Co (SM)

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		10.27	9.21	12.08	16.36	14.40	13.73	10.38	9.46	10.61	7.67	7.01	6.09	6.94	9.21	10.75	11.20	8.61	10.48	9.66	11.28
DSO	days	35.54	39.63	30.21	22.31	25.35	26.58	35.16	38.57	34.40	47.59	52.06	59.98	52.63	39.64	33.95	32.59	42.40	34.82	37.77	32.37

December 31, 2023 calculation

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

To analyze SM Energy Co's days of sales outstanding (DSO) over the past eight quarters, we observe fluctuations in the metric. DSO measures the average number of days it takes a company to collect revenue after a sale is made.

In Q4 2023, the DSO was 35.54 days, representing a slight increase from the previous quarter's 39.63 days. This suggests that the company took slightly longer to collect its accounts receivable in the most recent quarter.

Comparing to the same quarter last year, the DSO has increased significantly from 25.35 days in Q4 2022 to 35.54 days in Q4 2023, indicating a potential deterioration in the company's ability to collect cash from its customers promptly.

Looking at the trend over the past eight quarters, we see fluctuations in DSO, with some quarters showing lower values (e.g., Q1 2023 and Q4 2022) and others higher values (e.g., Q3 2023 and Q4 2023). This volatility in DSO may indicate changes in the company's credit policy, customer payment behavior, or operational efficiency in collections.

Overall, SM Energy Co should monitor its DSO closely to ensure efficient management of accounts receivable and timely cash inflows. A rising DSO trend could indicate potential liquidity issues or inefficiencies in the company's cash conversion cycle.