Vital Energy Inc. (VTLE)

Days Sales Outstanding (DSO) is a key metric that indicates how efficiently a company is managing its accounts receivable. In the case of Vital Energy Inc., the trend in DSO over the past five years shows some fluctuations.

As of December 31, 2020, Vital Energy Inc. had a DSO of 42.03 days, indicating that on average, it took the company approximately 42 days to collect its accounts receivable. This suggests that the company had a relatively efficient accounts receivable collection process.

However, by December 31, 2021, the DSO had increased to 72.63 days, signaling a significant slowdown in the collection of accounts receivable. This prolonged DSO may indicate issues with credit policies or difficulty in collecting payments from customers.

In the following year, by December 31, 2022, the DSO decreased to 48.61 days, showing an improvement in the management of accounts receivable. This could be a positive sign that the company has taken steps to expedite the collection process.

Subsequently, the DSO increased again to 73.23 days by December 31, 2023, which indicates a regression in accounts receivable management similar to the situation in 2021.

By the end of December 31, 2024, the DSO reached 81.51 days, representing a further deterioration in the collection of accounts receivable. This extended period suggests that the company might be facing challenges in collecting payments from customers promptly.

Overall, the fluctuating trend in DSO for Vital Energy Inc. suggests variable efficiency in managing accounts receivable over the five-year period, signaling the need for the company to focus on optimizing its accounts receivable processes to improve cash flow management.

Peer comparison

Dec 31, 2024