SM Energy Co (SM)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	2,373,886	2,436,478	2,631,028	3,072,376	3,358,647	3,542,289	3,467,077	3,038,824	2,622,894	2,088,226	1,609,002	1,214,785	1,126,673	1,258,067	1,367,369	1,604,909	1,590,105	1,532,611	1,601,663	1,638,407
Receivables	US$ in thousands	231,165	264,511	217,794	187,810	233,297	258,003	333,944	321,076	247,201	272,248	229,512	199,631	162,455	136,613	127,173	143,311	184,732	146,211	165,757	145,299
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,373,886K ÷ $231,165K
= 10.27

The receivables turnover ratio for SM Energy Co has shown some fluctuations over the past eight quarters. The ratio measures how efficiently the company is able to collect outstanding receivables from its customers during a specific period.

In Q1 2023, the receivables turnover ratio was 16.36, indicating that the company collected outstanding receivables approximately 16.36 times during that quarter. This was a significant increase from the previous quarter, suggesting a more efficient collection process.

However, in Q2 2023, the ratio decreased to 12.08, indicating a slight dip in the efficiency of collecting receivables compared to the previous quarter. This was followed by a further decrease in Q3 2023 to 9.21, indicating a potential challenge in collecting outstanding receivables efficiently during that period.

The most recent data available for Q4 2023 shows an improvement in the receivables turnover ratio to 10.27, which is higher than the previous two quarters but still lower than the peak in Q1 2023.

Overall, the trend in the receivables turnover ratio for SM Energy Co over the past eight quarters shows some variability, with peaks and troughs in collection efficiency. It is important for the company to focus on maintaining a balance between extending credit to customers and collecting receivables promptly to ensure healthy cash flow and working capital management.