Viper Energy Ut (VNOM)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	827,697	866,467	504,917	250,626	298,283
Receivables	US$ in thousands	813	81,657	68,568	32,210	58,089
Receivables turnover		1,018.08	10.61	7.36	7.78	5.13

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $827,697K ÷ $813K
= 1,018.08

The receivables turnover of Viper Energy Ut has shown a significant improvement over the past five years, increasing from 5.13 in 2019 to 1,018.08 in 2023. This indicates that the company is collecting its accounts receivable at a much faster pace in recent years.

The sharp increase in receivables turnover from 2022 to 2023 suggests that the company has been able to more efficiently collect outstanding payments from its customers. This improvement is a positive sign of effective credit management and efficient collection practices within the company.

However, the extremely high receivables turnover in 2023 may also raise some concerns about the quality of the company's receivables. Such a large turnover ratio could potentially signal overly aggressive collection strategies that may alienate customers if not carefully managed.

Overall, the upward trend in the receivables turnover ratio for Viper Energy Ut reflects a positive development in the company's ability to manage its accounts receivable effectively, but it is crucial for the company to strike a balance between efficient collections and maintaining strong customer relationships.