Vital Energy Inc. (VTLE)

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		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	8.22	11.23	11.49	8.19
DSO	days	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	44.42	32.51	31.77	44.56

December 31, 2023 calculation

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

The Days Sales Outstanding (DSO) is a key metric that indicates the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO suggests that the company is collecting payments more quickly, while a higher DSO may indicate potential issues with accounts receivable management or slower collection processes.

Analyzing the DSO trend of Vital Energy Inc. over the past quarters reveals fluctuations in the company's collection efficiency. The DSO has shown variability over the periods under review, ranging from a low of 22.12 days to a high of 82.20 days.

The DSO stood at 73.23 days as of December 31, 2023, which is relatively higher compared to some previous quarters. This suggests that Vital Energy Inc. took longer to collect payments in the most recent period, potentially impacting its cash flow and liquidity position.

Examining the DSO trend over multiple periods, it is important to note the following observations:
- The DSO fluctuated between higher and lower levels, indicating inconsistent performance in managing accounts receivable.
- The DSO decreased significantly from June 30, 2023, to March 31, 2023, reflecting improved collection efforts during that period.
- The increase in DSO from the last quarter to the current quarter may indicate challenges in collecting receivables efficiently.

In conclusion, the analysis of the DSO trend for Vital Energy Inc. suggests that the company may need to focus on improving its accounts receivable management practices to ensure timely collection of sales proceeds and enhance cash flow efficiency. It would be essential for the company to monitor and address any factors contributing to a higher DSO to maintain healthy working capital levels and overall financial performance.