Chesapeake Energy Corp (CHK)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,721,000 | 10,899,000 | 12,549,000 | 14,178,000 | 11,743,000 | 10,703,000 | 8,431,000 | 5,604,000 | 5,549,000 | 3,722,000 | 3,792,000 | 3,606,000 | 5,251,000 | 5,918,000 | 7,045,000 | 8,924,000 | 8,595,000 | 9,462,000 | 9,799,000 | 9,702,000 |
| Total current assets | US$ in thousands | 2,609,000 | 2,515,000 | 2,220,000 | 2,629,000 | 2,698,000 | 2,059,000 | 2,010,000 | 1,487,000 | 2,103,000 | 1,734,000 | 1,354,000 | 1,190,000 | 1,108,000 | 1,072,000 | 690,000 | 1,818,000 | 1,251,000 | 1,403,000 | 1,384,000 | 1,365,000 |
| Total current liabilities | US$ in thousands | 1,314,000 | 1,614,000 | 1,651,000 | 1,898,000 | 2,704,000 | 4,238,000 | 4,241,000 | 4,392,000 | 2,447,000 | 2,510,000 | 1,866,000 | 1,443,000 | 3,094,000 | 3,105,000 | 2,389,000 | 2,260,000 | 2,392,000 | 2,348,000 | 2,220,000 | 2,930,000 |
| Working capital turnover | 6.73 | 12.10 | 22.05 | 19.40 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,721,000K ÷ ($2,609,000K – $1,314,000K)
= 6.73
The working capital turnover of Chesapeake Energy Corp has shown a fluctuating trend over the periods presented. The ratio was 6.73 as of December 31, 2023, indicating that the company generated $6.73 in revenue for each dollar of working capital invested. This suggests that the company efficiently utilized its working capital to generate sales.
The significant increase in the working capital turnover to 12.10 as of September 30, 2023, and further to 22.05 as of June 30, 2023, reflects an improvement in the company's efficiency in utilizing its working capital during these periods. A higher turnover ratio implies that Chesapeake Energy Corp is generating more revenue from its working capital, which can be indicative of effective management of working capital resources.
However, the working capital turnover ratio decreased to 19.40 as of March 31, 2023, indicating a slight decline in efficiency compared to the previous quarter. Unfortunately, the data for periods prior to 2023 is not available, so a trend analysis over a longer period is not possible.
Overall, the fluctuating nature of the working capital turnover ratio suggests that Chesapeake Energy Corp has experienced varying levels of efficiency in utilizing its working capital to generate revenue in the periods reported. Further analysis and comparison with industry benchmarks would provide additional insights into the company's working capital management performance.
Peer comparison
Dec 31, 2023