Chord Energy Corp (CHRD)

Short-term

Turnover ratios

Chord Energy Corp's inventory turnover has shown a positive trend over the past five years, increasing from 24.85 in 2020 to 41.84 in 2024. This indicates that the company is managing its inventory more efficiently over time, selling goods more quickly or maintaining lower inventory levels.

The receivables turnover, payables turnover, and working capital turnover ratios are not available for analysis as the data is missing for all years except for 2021 and 2023. This lack of information limits our ability to assess the efficiency of the company's accounts receivable collection, payment of accounts payable, and utilization of working capital.

In conclusion, the increasing trend in inventory turnover suggests that Chord Energy Corp is improving its management of inventory, which can positively impact profitability. However, a more comprehensive analysis incorporating all activity ratios would provide a more complete understanding of the company's overall operational efficiency.

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Average number of days

Based on the provided data for Chord Energy Corp, here is a comprehensive analysis of the activity ratios:

1. Days of Inventory on Hand (DOH):
- Chord Energy Corp's inventory management has shown improvement over the years, as the number of days of inventory on hand has decreased from 14.69 days as of December 31, 2020, to 8.72 days as of December 31, 2024. This indicates that the company is selling its inventory at a faster rate.

2. Days of Sales Outstanding (DSO):
- The data does not include information on the Days of Sales Outstanding (DSO) for Chord Energy Corp for the years provided. DSO is crucial for assessing the efficiency of the company in collecting its accounts receivable.

3. Number of Days of Payables:
- Similar to DSO, the information on the Number of Days of Payables is not available for Chord Energy Corp for the years provided. This ratio is essential for understanding how long it takes for the company to pay its suppliers.

In conclusion, while the inventory management of Chord Energy Corp has displayed improvement over the years based on the Days of Inventory on Hand ratio, a complete analysis of the company's activity ratios would require additional information on the Days of Sales Outstanding and the Number of Days of Payables.

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Long-term

Chord Energy Corp's Fixed Asset Turnover ratio has experienced a slight decrease over the years, from 1.27 in 2020 to 0.77 in 2022. This indicates a potential inefficiency in the company's utilization of fixed assets to generate revenue. The lack of data for 2023 and 2024 prevents a complete trend analysis.

On the other hand, the Total Asset Turnover ratio has shown a relatively stable trend, increasing from 0.50 in 2020 to 0.56 in 2023 before dropping to 0.40 in 2024. This suggests that the company is generating more revenue in relation to its total assets, although the decrease in 2024 may warrant further investigation.

Overall, the decreasing trend in Fixed Asset Turnover and the fluctuation in Total Asset Turnover indicate potential challenges in efficiently utilizing assets to generate revenue, which may require closer scrutiny and strategic adjustments.