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.