Vital Energy Inc. (VTLE)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	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	927,670	924,835	880,272	880,711
Receivables	US$ in thousands	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	112,895	82,369	76,610	107,520
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,491,174K ÷ $299,170K
= 4.98

The receivables turnover ratio for Vital Energy Inc. has fluctuated over the past five years. The ratio indicates how efficiently the company is able to collect payments from its customers during a specific period. Generally, a higher turnover ratio suggests that the company is collecting receivables more quickly.

In analyzing the data provided, we observed that the receivables turnover ratio has shown varying trends. It ranged from a low of 4.44 in March 2022 to a high of 16.50 in March 2020. Notably, there was a significant increase in the ratio from 2020 to early 2021, indicating improved efficiency in collecting receivables during that time.

However, the ratio trended downwards in 2021 and 2022 before picking up again in 2023. Notably, in recent quarters, the turnover ratio has been above 5, with the highest ratio recorded in June 2023 at 10.24.

Overall, Vital Energy Inc. has demonstrated some fluctuations in its receivables turnover ratio over the years, which may have been influenced by factors such as changes in the company's credit policies, customer payment behavior, or the industry's economic conditions. Further analysis and comparison with industry benchmarks could provide more insights into the effectiveness of the company's accounts receivable management.