Vital Energy Inc. (VTLE)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	1,710,423	2,010,826	1,585,927	1,427,688	1,491,174	1,197,050	1,470,610	1,645,783	1,495,182	1,639,176	1,357,310	948,273	844,278	562,119	410,399	469,362	863,451	893,508	1,069,249	1,247,510
Receivables	US$ in thousands	391,647	224,958	225,111	290,248	299,170	199,838	143,672	147,071	199,170	162,876	205,767	213,549	163,298	122,657	90,609	67,704	76,155	60,298	69,113	75,588
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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,710,423K ÷ $391,647K
= 4.37

The receivables turnover of Vital Energy Inc. has shown a fluctuating trend over the past years. A higher receivables turnover ratio indicates that the company is more efficient in collecting its outstanding receivables.

In March 2020, the receivables turnover ratio was 16.50, which indicates that receivables were turning over approximately 16.5 times during the year. This high ratio suggests that the company was collecting its receivables quickly.

However, the ratio started declining in subsequent quarters, reaching its lowest point of 4.44 in March 2022. This significant decrease may signify potential issues in the company's credit policies or the efficiency of its collection process.

There was a slight increase in the receivables turnover ratio in the following quarters, with a peak of 11.19 in March 2023. This improvement suggests that the company made efforts to enhance its receivables management practices.

Overall, the fluctuating trend in Vital Energy Inc.'s receivables turnover ratio indicates some variability in the efficiency of its accounts receivable management. It would be essential for the company to closely monitor and manage its receivables to ensure timely collections and maintain a healthy cash flow.