Civitas Resources Inc (CIVI)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		24.46	30.70	19.49	84.19	3.71
Number of days of payables	days	14.92	11.89	18.73	4.34	98.33

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 24.46
= 14.92

To analyze Civitas Resources Inc's number of days of payables, we need specific data for each year, which is currently not available in the provided table. The number of days of payables is a financial ratio that measures the average number of days it takes a company to pay off its trade payables. A longer number of days of payables may indicate that the company is taking longer to settle its obligations with suppliers, which could be a sign of financial distress or inefficient working capital management.

To assess the trend over the years and compare it to industry benchmarks, we would need to calculate the number of days of payables for each year using the formula:

Number of Days of Payables = (Accounts Payable / Cost of Goods Sold) x 365

By calculating this ratio for each year and comparing it to previous periods and industry averages, we can provide a detailed analysis of Civitas Resources Inc's payment practices and liquidity position in relation to its suppliers. Additionally, knowing the industry standards for this ratio can help to determine if the company is managing its payables effectively or if there are areas for improvement.