Chord Energy Corp (CHRD)

Short-term

Turnover ratios

Chord Energy Corp's inventory turnover ratio has shown a fluctuating trend over the years, with a peak of 47.40 in March 2020 and a low of 21.12 in March 2021. However, the ratio has generally been on an upward trajectory since then, reaching 41.95 by December 2024. This indicates that the company is managing its inventory efficiently and turning over its inventory quicker in recent periods.

On the other hand, the receivables turnover and payables turnover ratios are not available for analysis, as the data for these ratios is not provided in the information. Without this data, it is difficult to evaluate how effectively the company is collecting its receivables or managing its payables.

The working capital turnover ratio, which measures how efficiently a company is using its working capital to generate sales, has also shown varying performance. The ratio ranged from 4.28 in December 2021 to 163.19 in September 2023, showing significant fluctuations in the company's ability to generate sales relative to its working capital. This erratic performance suggests that Chord Energy Corp may need to focus on improving its working capital management in order to optimize its operational efficiency and financial performance.

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Average number of days

Based on the provided data, we can analyze the activity ratios of Chord Energy Corp as follows:

1. Days of Inventory on Hand (DOH): This ratio indicates the average number of days it takes for the company to sell its inventory. Chord Energy Corp's DOH has shown fluctuations over time, ranging from a low of 7.70 days on March 31, 2020, to a high of 17.29 days on March 31, 2021. The ratio has generally trended downwards since then, reaching 8.70 days on December 31, 2024. A lower DOH is generally favorable as it suggests efficient inventory management.

2. Days of Sales Outstanding (DSO): In the provided data, DSO is not available for any of the periods. This ratio typically measures how long it takes for a company to collect its accounts receivable. The absence of DSO data suggests that information on Chord Energy Corp's accounts receivable turnover is not available or not applicable.

3. Number of Days of Payables: The data does not provide information on the number of days of payables for any of the periods. This ratio would typically indicate the average number of days it takes a company to pay its suppliers. The absence of this data prevents us from assessing how efficiently Chord Energy Corp manages its accounts payable.

In conclusion, based on the activity ratios available for analysis, it is evident that Chord Energy Corp has effectively managed its inventory levels, showing a decreasing trend in days of inventory on hand over the period. However, the lack of data on days of sales outstanding and days of payables limits a comprehensive assessment of the company's overall working capital efficiency. Additional information would be required to provide a more comprehensive analysis of Chord Energy Corp's activity ratios.

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Long-term

Based on the provided data for Chord Energy Corp's long-term activity ratios:

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher ratio indicates better asset utilization.
- Chord Energy Corp's fixed asset turnover ratio fluctuated over the years, with a significant increase from 0.89 in September 2021 to 1.75 in June 2022 before declining to 0.77 by December 2022.
- The ratio decreased further to 0.81 by March 2023 and remained relatively stable around this level in subsequent periods.
- The lack of data for certain periods indicates a potential variability in the company's asset utilization efficiency.

2. Total Asset Turnover:
- The total asset turnover ratio assesses the company's ability to generate revenue in relation to its total assets. A higher ratio suggests better efficiency in asset utilization.
- Chord Energy Corp's total asset turnover ratio varied throughout the reporting periods, ranging from 0.34 in June 2024 to 0.77 in June 2022.
- The ratio showed some level of volatility but generally improved from 2020 to 2022 before declining in the latter periods.
- A decrease in the total asset turnover ratio could indicate inefficiencies in generating revenue relative to the company's asset base.

In summary, while Chord Energy Corp demonstrated improvements in asset turnover ratios in the mid-term, there were fluctuations and declines in the efficiency of utilizing fixed and total assets in generating sales in the later periods. Further analysis is necessary to understand the factors driving these changes and their potential impact on the company's operational performance and future growth prospects.