Talos Energy (TALO)

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		5.64	5.14	5.78	6.23	8.05	8.80	5.93	5.22	6.18	7.80	4.96	3.76	3.75	5.12	6.17	8.22	7.46	7.57	6.89	7.76
DSO	days	64.67	70.98	63.19	58.55	45.36	41.48	61.52	69.87	59.07	46.78	73.63	97.15	97.35	71.30	59.20	44.39	48.95	48.22	53.01	47.04

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.64
= 64.67

The Days Sales Outstanding (DSO) for Talos Energy Inc has been fluctuating over the past eight quarters. In Q4 2023, the DSO was 69.50 days, showing a slight decrease from the previous quarter at 73.75 days in Q3 2023. This indicates the company took approximately 69.50 days on average to collect its accounts receivable.

Comparing the current DSO to historical data, it is higher than the DSO in Q4 2022 at 46.84 days, indicating a potential slowdown in collecting sales revenue. The DSO has generally been trending upwards since Q1 2022, where it was at 73.05 days. This suggests a longer collection period for accounts receivable, which may impact the company's cash flow and liquidity position.

It is essential for Talos Energy Inc to monitor and analyze the DSO trend closely to ensure efficient management of its accounts receivable and timely collection of sales revenue. High DSO levels can indicate potential issues with credit policies, customer payment delays, or difficulties in collecting outstanding amounts, which may require further investigation and action to improve the company's financial performance.