Vital Energy Inc. (VTLE)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		4.37	8.94	7.05	4.92	4.98	5.99	10.24	11.19	7.51	10.06	6.60	4.44	5.17	4.58	4.53	6.93	11.34	14.82	15.47	16.50
DSO	days	83.58	40.83	51.81	74.20	73.23	60.93	35.66	32.62	48.62	36.27	55.33	82.20	70.60	79.64	80.59	52.65	32.19	24.63	23.59	22.12

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.37
= 83.58

Days Sales Outstanding (DSO) is a key metric that measures the average number of days it takes for a company to collect payment after a sale has been made. For Vital Energy Inc., the DSO has fluctuated over the years based on the provided data.

From March 31, 2020, to September 30, 2021, the DSO increased steadily from 22.12 days to 79.64 days. This upward trend may indicate potential issues with the company's accounts receivable management or changes in its customer payment behavior during this period.

However, from September 30, 2021, to June 30, 2024, the DSO fluctuated within a broader range, showing both decreases and increases. The DSO reached its highest point of 83.58 days on December 31, 2024, suggesting a potential delay in cash collection that could impact the company's liquidity and cash flow.

Overall, Vital Energy Inc. should closely monitor its DSO and implement effective credit and collection policies to ensure timely payment from customers and maintain healthy cash flow levels. An increasing DSO trend could indicate inefficiencies in accounts receivable management, while a decreasing trend may signal improved collection processes.