APA Corporation (APA)
Working capital 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 | 8,279,000 | 8,584,000 | 9,163,000 | 10,414,000 | 10,539,000 | 10,366,000 | 9,538,000 | 8,247,000 | 6,164,000 | 5,154,000 | 4,239,000 | 3,079,000 | 4,308,000 | 4,644,000 | 5,000,000 | 6,022,000 | 6,400,000 | 6,478,000 | 6,954,000 | 7,272,000 |
| Total current assets | US$ in thousands | 2,420,000 | 2,718,000 | 2,620,000 | 2,690,000 | 2,602,000 | 3,357,000 | 3,062,000 | 2,560,000 | 2,395,000 | 2,169,000 | 2,686,000 | 2,047,000 | 1,846,000 | 1,719,000 | 1,658,000 | 1,908,000 | 1,961,000 | 1,971,000 | 2,791,000 | 2,504,000 |
| Total current liabilities | US$ in thousands | 2,231,000 | 2,485,000 | 2,625,000 | 2,313,000 | 2,697,000 | 2,754,000 | 3,022,000 | 2,154,000 | 2,231,000 | 2,038,000 | 1,778,000 | 1,343,000 | 1,308,000 | 1,382,000 | 1,710,000 | 2,025,000 | 1,855,000 | 1,921,000 | 2,262,000 | 2,374,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,279,000K ÷ ($2,420,000K – $2,231,000K)
= 43.80
APA Corporation's working capital turnover ratio fluctuated significantly over the past year. In Q4 2023, the working capital turnover was notably high at 143.05, indicating that the company efficiently utilized its working capital to generate sales revenues. This represents a notable improvement compared to the previous quarters, showing a significant increase from 52.92 in Q3 2023 and 37.99 in Q1 2023.
The lack of data for Q2 2023 and Q4 2022 limits the ability to analyze the trend thoroughly. Nevertheless, the working capital turnover ratio has shown a positive trend overall, with Q3 2022 and Q1 2022 displaying values of 73.71 and 38.16, respectively, indicating an efficient utilization of working capital in those periods.
Overall, the significant increase in the working capital turnover ratio in Q4 2023 is a positive indicator of APA Corporation's effectiveness in managing its working capital to support sales activities. This improvement suggests that the company's operational efficiency has increased, potentially leading to better financial performance in the future.
Peer comparison
Dec 31, 2023