Vital Energy Inc. (VTLE)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,491,170 | 1,495,400 | 820,641 | 661,355 | 855,625 |
| Receivables | US$ in thousands | 299,170 | 199,170 | 163,298 | 76,155 | 112,895 |
| Receivables turnover | 4.98 | 7.51 | 5.03 | 8.68 | 7.58 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,491,170K ÷ $299,170K
= 4.98
Vital Energy Inc.'s receivables turnover ratio has fluctuated over the past five years, ranging from a low of 4.98 in 2023 to a high of 8.68 in 2020. This ratio indicates how efficiently the company is collecting payments from its customers. A higher turnover ratio suggests that the company is more effective in collecting its accounts receivable, which is typically seen as positive for cash flow and liquidity. Conversely, a lower turnover ratio may indicate potential issues with credit policies, collection efforts, or the quality of customers.
The trend in Vital Energy Inc.'s receivables turnover ratio shows some variability, which could be a result of changing economic conditions, shifts in customer payment behavior, or adjustments in the company's credit terms. It is essential for the company to monitor this ratio closely to ensure that receivables are managed effectively and that cash flow remains stable. Further analysis and comparison with industry benchmarks may provide additional insights into the company's receivables management efficiency.
Peer comparison
Dec 31, 2023