Chesapeake Energy Corp (CHK)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.21 | 0.17 | 0.35 | 0.12 | 0.18 | 2.35 | 11.91 | 13.10 | 8.57 | 17.89 | 21.10 | 4.39 | 468.11 | — | — | 10.03 | 2.79 | 1.08 | 1.40 | — |
| Receivables turnover | 14.71 | 15.91 | 18.70 | 16.41 | 8.17 | 6.09 | 4.67 | 4.05 | 4.98 | 4.57 | 5.63 | 5.12 | 7.04 | 8.75 | 13.73 | 11.71 | 8.68 | 9.68 | 9.60 | 8.11 |
| 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 |
| Working capital turnover | 6.73 | 12.10 | 22.05 | 19.40 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Chesapeake Energy Corp's activity ratios provide insights into the efficiency of its management of inventory, receivables, payables, and working capital.
1. Inventory turnover: The inventory turnover ratio fluctuates significantly over the periods, ranging from extremely low levels to exceptionally high levels. This indicates fluctuations in how quickly Chesapeake Energy is selling its inventory. The trend shows that the company struggled with managing inventory efficiently in some periods but significantly improved in others.
2. Receivables turnover: The receivables turnover ratio reflects how quickly Chesapeake Energy collects its accounts receivable. The ratios show a generally improving trend over the periods, indicating that the company has been collecting its receivables more efficiently. However, there are fluctuations in the ratios, suggesting potential changes in the company's credit policies or customer payment behaviors.
3. Payables turnover: The payables turnover ratio indicates how quickly Chesapeake Energy is paying its suppliers. The ratios show fluctuations but generally stable payment practices over the periods. In some quarters, there were significant increases in the payables turnover ratio, indicating prolonged payment periods to suppliers.
4. Working capital turnover: The working capital turnover ratio measures how efficiently Chesapeake Energy is utilizing its working capital to generate revenue. Based on the data provided, the working capital turnover ratio is inconsistent and lacks data for some periods, making it challenging to assess the company's efficiency in utilizing its working capital effectively.
Overall, the analysis of Chesapeake Energy Corp's activity ratios suggests mixed performance in managing its assets, receivables, and payables efficiently. The company should focus on maintaining consistent and effective management practices to improve its overall operational efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1,753.48 | 2,176.31 | 1,043.77 | 2,938.99 | 2,036.43 | 155.32 | 30.65 | 27.86 | 42.58 | 20.40 | 17.30 | 83.16 | 0.78 | — | — | 36.41 | 130.78 | 337.69 | 261.21 | — |
| Days of sales outstanding (DSO) | days | 24.82 | 22.94 | 19.52 | 22.24 | 44.70 | 59.92 | 78.10 | 90.08 | 73.34 | 79.92 | 64.88 | 71.26 | 51.85 | 41.69 | 26.58 | 31.17 | 42.04 | 37.69 | 38.03 | 44.99 |
| Number of days of payables | days | 1,048.14 | 1,231.88 | 1,370.35 | 1,331.30 | 1,342.04 | 1,395.28 | 1,153.51 | 1,042.06 | 936.83 | 582.64 | 486.09 | 399.65 | 14.20 | 12.94 | 1.60 | 22.73 | 486.02 | 653.03 | 712.51 | 725.17 |
Days of inventory on hand (DOH) measures how many days it takes for a company to sell its inventory. Chesapeake Energy Corp's DOH has been fluctuating significantly over the periods, indicating inconsistency in managing inventory levels. The company had extremely high DOH in some quarters, suggesting inefficiencies in inventory management.
Days of sales outstanding (DSO) reflects the average number of days it takes for a company to collect payment after a sale. Chesapeake Energy Corp's DSO has shown a decreasing trend, implying improved collection processes over time. However, there are still fluctuations in DSO, indicating potential inconsistencies in collecting payments from customers.
Number of days of payables represents the average number of days a company takes to pay its suppliers. Chesapeake Energy Corp's days of payables have also been varying, suggesting changes in the company's payment practices. The company had extremely high payables in some quarters, indicating potential delays in settling accounts with suppliers.
Overall, Chesapeake Energy Corp needs to focus on improving inventory management to reduce DOH, maintaining consistent collection procedures to manage DSO effectively, and optimizing payment practices to ensure smoother cash flow management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 0.86 | 1.08 | 1.18 | 1.35 | 1.05 | 0.90 | 0.72 | 0.48 | 0.63 | 0.68 | 0.68 | 0.64 | 1.00 | 1.05 | 1.24 | 1.53 | 0.58 | 0.64 | 0.66 | 0.65 |
| Total asset turnover | 0.61 | 0.76 | 0.87 | 0.97 | 0.76 | 0.76 | 0.61 | 0.42 | 0.50 | 0.51 | 0.54 | 0.52 | 0.80 | 0.86 | 1.08 | 1.14 | 0.53 | 0.57 | 0.59 | 0.58 |
Chesapeake Energy Corp's long-term activity ratios provide insights into how effectively the company utilizes its assets to generate sales. The fixed asset turnover ratio indicates that the company generated $0.86 to $1.35 in sales for every dollar invested in fixed assets during the period under review. The trend shows improvements in recent quarters, with the ratio increasing from 0.48 in Q1 2022 to 1.35 in Q1 2023.
On the other hand, the total asset turnover ratio reflects the company's ability to generate sales in relation to its total assets. Chesapeake Energy Corp's total asset turnover ratio fluctuated between 0.42 to 1.14 over the period studied, indicating varying levels of efficiency in asset utilization. The trend shows some fluctuation over time, with the ratio peaking in Q1 2020 at 1.14 but decreasing to 0.61 in Q2 2022 before gradually recovering.
Overall, while the company has shown improvements in its fixed asset turnover ratio, its total asset turnover ratio remains more volatile. Further analysis would be needed to understand the underlying factors contributing to these trends and to assess the company's overall operational efficiency and asset management practices.