Civitas Resources Inc (CIVI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.56 | 30.40 | 30.88 | 17.70 | 8.22 |
| Receivables turnover | 6.51 | 10.99 | 2.55 | 6.58 | 7.14 |
| Payables turnover | 24.46 | 30.70 | 19.49 | 84.19 | 3.71 |
| Working capital turnover | 11.27 | 25.08 | — | 12.00 | 54.02 |
The inventory turnover ratio for Civitas Resources Inc is not available for the years 2021, 2022, and 2023, indicating that the company did not provide this information or may not have any inventory turnover during these periods.
The receivables turnover ratio shows a declining trend from 7.91 in 2022 to 4.62 in 2023. This suggests that the efficiency of collecting receivables has decreased over the past year, possibly indicating issues with customer payment or credit terms.
The payables turnover ratio remains at 0.00 for all years, indicating that the company does not have a significant turnover of payables or does not provide sufficient payment information in its financial statements.
The working capital turnover ratio shows fluctuating values over the years, with a significant decrease in 2023 compared to the previous years. A high working capital turnover ratio implies efficient utilization of working capital to generate sales, but the significant drop in 2023 may raise concerns about the company's operational efficiency or working capital management during that specific period.
Overall, the activity ratios suggest that Civitas Resources Inc may need to focus on improving its inventory management, enhancing receivables collection efficiency, and monitoring working capital turnover to ensure optimal utilization of resources and enhance overall operational performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.65 | 12.01 | 11.82 | 20.62 | 44.38 |
| Days of sales outstanding (DSO) | days | 56.03 | 33.21 | 143.24 | 55.47 | 51.12 |
| Number of days of payables | days | 14.92 | 11.89 | 18.73 | 4.34 | 98.33 |
Based on the activity ratios provided for Civitas Resources Inc, we can see notable fluctuations over the past five years:
1. Days of Inventory on Hand (DOH): Unfortunately, the data for this ratio is missing for all years, so we are unable to provide an analysis of the company's efficiency in managing its inventory levels.
2. Days of Sales Outstanding (DSO):
- In 2023, DSO stands at 79.02 days, indicating that on average, it takes the company approximately 79 days to collect its accounts receivable.
- Comparing this to previous years, there has been a significant decrease from 2021 when DSO was 168.12 days, showing an improvement in the company's collection efficiency.
- However, DSO has increased compared to 2022 when it was 46.14 days, suggesting a potential slowdown in collecting receivables in 2023 compared to the previous year.
3. Number of Days of Payables:
- Similar to DOH, data for this ratio is missing for all years, making it difficult to analyze the company's payment practices and liquidity management.
In summary, while the Days of Sales Outstanding ratio for Civitas Resources Inc has shown some improvements in 2023 compared to 2021, there is a slight increase from 2022 to 2023. Further information on inventory management and payables turnover would provide a more comprehensive view of the company's overall efficiency in managing its working capital.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.28 | 0.57 | 0.16 | 0.22 | 0.30 |
| Total asset turnover | 0.23 | 0.47 | 0.14 | 0.18 | 0.26 |
The long-term activity ratios for Civitas Resources Inc reflect the company's efficiency in utilizing its assets to generate sales. The fixed asset turnover ratio has shown fluctuations over the five-year period, ranging from 0.16 to 0.57. A lower fixed asset turnover ratio indicates that the company is not generating sufficient revenue from its investment in fixed assets, while a higher ratio suggests better utilization of fixed assets to generate sales.
In contrast, the total asset turnover ratio also varies over the period, ranging from 0.14 to 0.48. This ratio indicates the company's overall efficiency in generating sales from all its assets. A lower total asset turnover ratio suggests that the company may have excess assets or inefficient use of resources, while a higher ratio indicates more efficient utilization of assets to generate revenue.
Overall, the trend in both fixed asset turnover and total asset turnover ratios for Civitas Resources Inc shows some volatility, indicating potential fluctuations in the company's asset utilization efficiency over the five-year period. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational performance and efficiency in utilizing its assets.