Chesapeake Energy Corp (CHK)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 148,000 | 160,000 | 171,000 | 173,000 | 164,000 | 141,000 | 131,000 | 131,000 | 120,000 | 161,000 | 211,000 | 316,000 | 8,894,000 | 8,912,000 | 8,909,000 | 8,863,000 | 374,000 | 294,000 | 313,000 | 378,000 |
| Payables | US$ in thousands | 425,000 | 540,000 | 642,000 | 631,000 | 603,000 | 539,000 | 414,000 | 374,000 | 308,000 | 257,000 | 281,000 | 346,000 | 346,000 | 316,000 | 39,000 | 552,000 | 498,000 | 526,000 | 611,000 | 751,000 |
| Payables turnover | 0.35 | 0.30 | 0.27 | 0.27 | 0.27 | 0.26 | 0.32 | 0.35 | 0.39 | 0.63 | 0.75 | 0.91 | 25.71 | 28.20 | 228.44 | 16.06 | 0.75 | 0.56 | 0.51 | 0.50 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $148,000K ÷ $425,000K
= 0.35
The payables turnover ratio for Chesapeake Energy Corp has exhibited fluctuations over the provided periods. The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating the frequency at which it pays its suppliers.
In recent quarters, the payables turnover ratio has been relatively low, ranging from 0.27 to 0.35. This suggests that Chesapeake Energy Corp is taking longer to pay its suppliers. A lower payables turnover ratio may indicate that the company is managing its cash flow conservatively or negotiating longer payment terms with its suppliers.
However, there are outliers in the data, notably in the quarters ending in December 2020, September 2020, June 2020, and December 2019, where the payables turnover ratio spiked significantly to unusually high levels of 25.71, 28.20, 228.44, and 16.06, respectively. Such dramatic increases could be due to specific events or anomalies in those periods, such as large one-time payments or changes in the company's accounts payable processes.
Overall, the trend of the payables turnover ratio for Chesapeake Energy Corp indicates a need to closely monitor the company's management of accounts payable and supplier relationships to ensure efficient cash flow management and working capital optimization.
Peer comparison
Dec 31, 2023