Chord Energy Corp (CHRD)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Inventory turnover | 10.78 | 10.77 | 7.29 | 4.53 | 15.34 |
| Receivables turnover | 4.10 | 5.30 | 4.70 | 5.11 | 5.62 |
| Payables turnover | 22.71 | 20.18 | 98.87 | 8.89 | 25.20 |
| Working capital turnover | 14.92 | 34.17 | 4.54 | — | — |
Based on the activity ratios provided for Chord Energy Corp, it is noted that there are inconsistencies in the data for inventory turnover and payables turnover since they all show a value of 0.00 for the years 2021, 2022, and 2023. This could indicate that either the company has effectively managed its inventory levels and payables turnover is not applicable or there may be issues with data accuracy or calculation methodology.
In terms of receivables turnover, the company's performance has shown fluctuations over the three-year period. The ratio decreased from 4.19 in 2021 to 4.13 in 2023. This suggests that Chord Energy Corp took slightly longer to collect its accounts receivable in 2023 compared to 2021.
On the other hand, the working capital turnover ratio has shown a significant variation over the same period. The ratio decreased from 4.05 in 2021 to 30.09 in 2022, and then dropped to 15.04 in 2023. This indicates that the company efficiently utilized its working capital to generate sales revenue in 2022, but the efficiency dropped in 2023.
In conclusion, it appears that Chord Energy Corp may need to further analyze and potentially improve its inventory and payables management practices. Moreover, the company should monitor its receivables collection efficiency to ensure timely cash inflows, and work towards optimizing its working capital turnover to sustain or improve operational efficiency.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 33.85 | 33.88 | 50.04 | 80.62 | 23.79 |
| Days of sales outstanding (DSO) | days | 89.05 | 68.90 | 77.70 | 71.48 | 64.97 |
| Number of days of payables | days | 16.07 | 18.09 | 3.69 | 41.04 | 14.48 |
Based on the data provided for Chord Energy Corp's activity ratios, we observe the following trends:
1. Days of Sales Outstanding (DSO): The DSO ratio indicates the average number of days it takes for the company to collect payment after making a sale. In 2023, the DSO increased to 88.34 days from 78.24 days in 2022 and 87.14 days in 2021. This suggests that Chord Energy Corp took longer to collect receivables in 2023 compared to previous years, which may indicate potential issues with accounts receivable management or changes in customer payment behavior.
2. Days of Inventory on Hand (DOH): Unfortunately, the data for DOH is missing in all reported years. Without this information, we are unable to assess how efficiently Chord Energy Corp is managing its inventory levels. However, it is important to note that a lower DOH ratio is generally preferred as it indicates faster inventory turnover.
3. Number of Days of Payables: Similar to DOH, data on the number of days of payables is not available for any of the years. This ratio would have provided insight into how long it takes for Chord Energy Corp to pay its suppliers.
In conclusion, while the DSO ratio for Chord Energy Corp increased in 2023, the lack of data for DOH and payables prevents a comprehensive assessment of the company's overall activity ratios. It would be beneficial for the company to provide complete information on all relevant activity ratios to have a more detailed understanding of its operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.73 | 0.88 | 1.34 | 0.27 | 0.31 |
| Total asset turnover | 0.56 | 0.62 | 0.59 | 0.25 | 0.29 |
Chord Energy Corp's long-term activity ratios indicate the efficiency of the company in generating sales from its fixed assets and total assets. The fixed asset turnover has been decreasing over the past three years, from 1.20 in 2021 to 0.73 in 2023, suggesting a decline in the company's ability to generate revenue from its fixed assets. This trend may indicate underutilization or inefficiency in managing fixed assets.
On the other hand, the total asset turnover ratio has remained relatively stable around 0.55 to 0.56, indicating that the company generates revenue from its total assets at a consistent pace. However, the ratios are relatively low, which may indicate that Chord Energy Corp has a high level of assets relative to its sales, potentially signaling inefficiencies or underperformance in utilizing its assets to generate revenue.
Overall, the declining trend in fixed asset turnover and the modest level of total asset turnover suggest that Chord Energy Corp may need to reassess its asset management strategies to improve efficiency and enhance profitability in the long term.