Vital Energy Inc. (VTLE)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,753,840	1,491,170	1,495,400	820,641	661,355
Receivables	US$ in thousands	391,647	299,170	199,170	163,298	76,155
Receivables turnover		4.48	4.98	7.51	5.03	8.68

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,753,840K ÷ $391,647K
= 4.48

The receivables turnover ratio measures how efficiently a company is collecting payments from its customers over a specific period. Vital Energy Inc.'s receivables turnover has shown fluctuating trends over the years:

1. In December 31, 2020, the receivables turnover was 8.68, indicating that Vital Energy Inc. was able to collect outstanding payments nearly 8.68 times during that year.

2. By December 31, 2021, the ratio decreased to 5.03, suggesting a decline in the efficiency of collecting payments compared to the previous year.

3. The ratio improved in December 31, 2022, reaching 7.51, showing an increase in the company's ability to manage and collect its receivables efficiently.

4. However, by December 31, 2023, the ratio dropped to 4.98, indicating a slowdown in the collection of outstanding payments.

5. In the most recent year, December 31, 2024, the receivables turnover further decreased to 4.48, signaling potential challenges in collecting payments promptly.

Overall, Vital Energy Inc.'s receivables turnover ratios have varied, indicating the need for the company to focus on improving its efficiency in collecting outstanding receivables to maintain healthy cash flows and liquidity.