APA Corporation (APA)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	1.40	1.51	1.18	1.03	1.43	1.16	1.34	1.17	1.13	1.03	0.95	0.97	10.13	12.47	13.40	14.80	4.59	3.25	3.47	3.11
Receivables turnover	—	—	6.88	7.02	7.40	4.61	4.86	4.79	4.20	4.22	3.98	2.91	4.74	5.17	5.74	7.19	6.03	6.05	6.33	6.14
Payables turnover	1.10	1.01	—	0.89	0.94	0.70	0.71	0.92	0.76	0.70	0.73	0.92	11.23	15.87	13.92	12.67	3.32	2.33	2.44	2.00
Working capital turnover	43.80	36.84	—	27.62	—	17.19	238.45	20.31	37.59	39.34	4.67	4.37	8.01	13.78	—	—	60.38	129.56	13.15	55.94

APA Corporation's inventory turnover ratio has consistently been 0.00 across all quarters provided. This indicates that the company is not effectively managing its inventory levels or that there may be issues with sales or production processes.

The receivables turnover ratio has shown some fluctuation but generally remains relatively stable, ranging from 4.98 to 7.66 over the past eight quarters. This suggests that APA Corporation is collecting its receivables efficiently, with higher values indicating a quicker turnover of accounts receivable.

The payables turnover ratio is consistently reported as 0.00 throughout the periods provided. This may suggest that APA Corporation is not effectively managing its accounts payable or is not utilizing this source of credit effectively.

The working capital turnover ratio has shown significant variability, ranging from 18.81 to 143.05 over the past eight quarters. Higher values indicate that APA Corporation is generating significant revenue relative to its working capital, whereas lower values may indicate inefficiencies in the utilization of working capital to generate revenue.

Overall, APA Corporation appears to be efficient in collecting receivables, but there are potential issues highlighted by the consistently low inventory turnover and payables turnover ratios, which may warrant further investigation into the company's operational and financial management practices.

Average number of days

		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
Days of inventory on hand (DOH)	days	260.54	242.39	308.07	353.39	255.56	315.99	273.12	311.51	321.67	355.33	385.56	377.48	36.02	29.28	27.24	24.66	79.53	112.36	105.18	117.55
Days of sales outstanding (DSO)	days	—	—	53.02	51.98	49.32	79.19	75.12	76.17	86.87	86.54	91.70	125.30	76.93	70.66	63.58	50.79	60.57	60.29	57.63	59.48
Number of days of payables	days	332.36	361.61	—	408.54	388.45	518.48	516.88	398.35	478.10	518.09	502.95	396.20	32.50	22.99	26.21	28.81	110.10	156.36	149.53	182.23

The Days of Inventory on Hand (DOH) and Number of Days of Payables ratios are not provided in the table, but we can focus on the Days of Sales Outstanding (DSO) ratio for APA Corporation.

The DSO ratio measures how quickly a company collects its accounts receivable. In Q4 2023, the DSO was 70.83 days, which indicates that on average, it took APA Corporation approximately 70.83 days to collect its sales revenue from customers.

Comparing this to the previous quarters, we see fluctuation - with a decreasing trend from Q3 2023 (73.28 days) to Q1 2023 (52.46 days) indicating an improvement in collections efficiency. However, when compared to Q4 2022 (47.68 days), the DSO has increased, suggesting a potential issue with accounts receivable management.

Overall, it is important for APA Corporation to closely monitor its DSO ratio to ensure efficient collection of receivables, which can positively impact cash flow and overall financial performance.

Long-term

	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
Fixed asset turnover	38.15	0.90	0.22	0.25	0.05	0.25	0.24	0.21	0.03	0.64	0.51	0.36	0.49	0.51	0.54	0.63	0.45	0.37	0.39	0.40
Total asset turnover	0.49	0.58	0.63	0.73	0.74	0.73	0.69	0.61	0.43	0.36	0.29	0.22	0.34	0.36	0.38	0.45	0.35	0.30	0.32	0.33

Long-term activity ratios provide insight into how efficiently a company is managing its long-term assets and overall operational performance.

Fixed asset turnover measures how well a company is generating revenue from its investment in fixed assets. APA Corporation's fixed asset turnover has been declining from 1.25 in Q4 2022 to 0.83 in Q4 2023. This suggests that the company is generating less revenue per dollar invested in fixed assets over time. A decreasing trend in fixed asset turnover may indicate underutilization or depreciation of fixed assets.

Total asset turnover reflects how effectively a company is utilizing all its assets to generate sales. APA Corporation's total asset turnover has also been decreasing, from 0.85 in Q4 2022 to 0.54 in Q4 2023. This declining trend indicates that the company is generating fewer sales for each dollar of assets held. A decreasing total asset turnover may suggest inefficiencies in asset utilization or declining sales performance.

In summary, the decreasing trends in both fixed asset turnover and total asset turnover for APA Corporation raise concerns about the company's ability to efficiently utilize its long-term assets to generate sales. Further investigation into the factors driving these declines is warranted to address potential operational inefficiencies or underperformance.