Vital Energy Inc. (VTLE)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		4.98	7.51	5.03	8.68	7.58
DSO	days	73.23	48.61	72.63	42.03	48.16

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.98
= 73.23

Vital Energy Inc.'s Days Sales Outstanding (DSO) is a key ratio used to evaluate the efficiency of the company in collecting accounts receivable. The trend analysis of DSO over the past five years indicates fluctuating patterns in how quickly the company converts its accounts receivable into cash:

1. In 2023, the DSO increased significantly to 73.23 days from 48.61 days in 2022. This suggests that Vital Energy Inc. took longer to collect its outstanding sales compared to the previous year, which could signal potential challenges in collecting payments from customers.

2. The DSO in 2021 was 72.63 days, showing a slight improvement from 2020 at 42.03 days. This increase in DSO indicates that the company might have been facing difficulties in collecting payments from customers in 2021.

3. In 2020, the DSO decreased significantly to 42.03 days from 48.16 days in 2019. This improvement suggests that Vital Energy Inc. was more efficient in collecting accounts receivable in 2020 compared to the previous year.

Overall, the fluctuations in Vital Energy Inc.'s DSO over the past five years reflect varying effectiveness in managing accounts receivable and collecting payments from customers. It is important for the company to closely monitor and analyze DSO trends to ensure efficient cash flow management and timely collection of outstanding sales.