Antero Resources Corp (AR)

Payables 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
Cost of revenue (ttm)	US$ in thousands	280,530	253,187	256,897	267,191	279,062	337,911	342,578	340,369	327,267	264,360	246,558	220,763	239,090	282,507	284,999	319,052	972,305	1,433,422	2,449,595	2,547,030
Payables	US$ in thousands	—	—	—	—	—	—	—	83,685	77,543	103,640	87,860	67,769	24,819	60,409	39,612	41,990	26,728	55,173	36,736	37,909
Payables turnover		—	—	—	—	—	—	—	4.07	4.22	2.55	2.81	3.26	9.63	4.68	7.19	7.60	36.38	25.98	66.68	67.19

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $280,530K ÷ $—K
= —

The payables turnover ratio reflects how efficiently a company is managing its payables by measuring how many times during a period the company pays off its average accounts payable balance. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.

Analyzing the payables turnover of Antero Resources Corp over the specified periods, we see a declining trend in the ratio. From March 31, 2020, to December 31, 2022, the payables turnover ratio was relatively stable at a moderate level, ranging from 25.98 to 36.38, indicating a reasonable pace of paying off suppliers.

However, from March 31, 2023, onwards, we observe a significant decline in the payables turnover ratio, dropping to as low as 2.55 by September 30, 2022. This suggests that Antero Resources Corp may be taking longer to pay off its suppliers, which could potentially strain relationships with vendors or indicate inefficiencies in working capital management.

The sharp decrease in the payables turnover ratio between 2023 and 2024 should be closely monitored as it may signal potential cash flow challenges or liquidity issues for the company. Further analysis of the company's cash flow and working capital management practices would be necessary to understand the reasons behind this decline and assess the potential impact on the company's financial health.