Chesapeake Energy Corp (CHK)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		0.35	0.27	0.39	25.71	0.76
Number of days of payables	days	1,048.14	1,342.04	936.83	14.20	483.43

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.35
= 1,048.14

Chesapeake Energy Corp's number of days of payables has exhibited significant variability over the past five years. As of December 31, 2023, the company took an average of 1,048.14 days to pay its accounts payable, indicating a substantial lengthening of the payment cycle compared to previous years. This increase may suggest potential challenges in managing and settling its payables efficiently.

In contrast, as of December 31, 2022, the number of days of payables was notably higher at 1,342.04 days, reflecting a further extension of the payment period compared to the preceding year. This trend could raise concerns about the company's liquidity position and its ability to meet its short-term obligations promptly.

The number of days of payables was relatively lower in earlier years, with 936.83 days as of December 31, 2021, 14.20 days as of December 31, 2020, and 483.43 days as of December 31, 2019. These fluctuations in the payment cycle indicate a potential lack of consistency in managing the company's trade payables.

Overall, the trend in Chesapeake Energy Corp's number of days of payables highlights the importance of closely monitoring and addressing any significant changes in the payment cycle to ensure effective working capital management and financial stability.