Chord Energy Corp (CHRD)
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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,862,929 | 3,922,232 | 3,986,992 | 3,864,580 | 4,140,141 | 3,571,117 | 2,780,208 | 2,624,106 | 1,804,786 | 1,597,593 | 1,329,219 | 1,090,044 | 1,227,058 | 1,430,029 | 1,795,055 | 1,936,243 | 2,052,134 | 2,157,750 | 2,173,144 | 2,066,018 |
| Total current assets | US$ in thousands | 1,424,550 | 1,419,940 | 1,124,520 | 1,498,120 | 1,482,510 | 1,453,940 | 1,115,120 | 952,165 | 1,615,440 | 753,257 | 732,332 | 422,523 | 339,441 | 418,835 | 654,620 | 437,351 | 495,614 | 471,720 | 521,530 | 554,155 |
| Total current liabilities | US$ in thousands | 1,165,460 | 1,395,750 | 1,173,390 | 1,268,090 | 1,361,330 | 1,488,760 | 1,249,720 | 900,987 | 1,225,200 | 665,084 | 691,425 | 508,639 | 575,294 | 361,353 | 498,674 | 602,883 | 593,861 | 558,428 | 668,846 | 611,776 |
| Working capital turnover | 14.91 | 162.14 | — | 16.80 | 34.17 | — | — | 51.27 | 4.62 | 18.12 | 32.49 | — | — | 24.88 | 11.51 | — | — | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,862,929K ÷ ($1,424,550K – $1,165,460K)
= 14.91
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. The ratio is calculated by dividing net sales by average working capital.
Looking at the data provided for Chord Energy Corp, we see significant fluctuations in the working capital turnover ratio over the past eight quarters.
In Q4 2023, the working capital turnover ratio was 15.04, indicating that the company generated $15.04 in revenue for every $1 of working capital. This was a significant decrease from the ratio of 163.19 in Q3 2023, suggesting a potential issue with the management of working capital during this period.
The working capital turnover ratio was not available for Q2 2023, which may indicate a lack of data or an anomaly in the financial reporting.
In Q1 2023, the ratio rebounded to 16.91, showing an improvement in the efficiency of working capital utilization compared to the previous quarter.
The working capital turnover ratios in earlier quarters also showed fluctuations, with values of 30.09 in Q4 2022, 36.68 in Q1 2022, and unavailable data for Q3 2022 and Q2 2022.
Overall, the fluctuating working capital turnover ratios for Chord Energy Corp indicate inconsistencies in how effectively the company is managing its working capital to generate revenue. Further analysis would be required to understand the underlying reasons for these fluctuations and to determine the impact on the company's financial performance and stability.
Peer comparison
Dec 31, 2023