Chesapeake Energy Corp (CHK)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 148,000 | 164,000 | 120,000 | 8,894,000 | 376,000 |
| Payables | US$ in thousands | 425,000 | 603,000 | 308,000 | 346,000 | 498,000 |
| Payables turnover | 0.35 | 0.27 | 0.39 | 25.71 | 0.76 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $148,000K ÷ $425,000K
= 0.35
The payables turnover ratio measures how efficiently a company is managing its trade payables by indicating how many times during a period the company pays off its suppliers.
Based on the data provided, Chesapeake Energy Corp's payables turnover has fluctuated over the past five years. In 2023, the payables turnover ratio was 0.35, which indicates that the company paid its suppliers approximately 0.35 times during the year. This shows an improvement from the previous year's ratio of 0.27.
It is important to note that in 2020, there was a significant spike in the payables turnover ratio to 25.71, which could be an anomaly or may suggest a change in the company's payment terms or supplier relationships.
Overall, a lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could indicate liquidity or cash flow issues. It is essential for Chesapeake Energy Corp to closely monitor this ratio to ensure efficient management of its payables and maintain healthy supplier relationships.
Peer comparison
Dec 31, 2023