Civitas Resources Inc (CIVI)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,281,690 | 1,363,730 | 975,603 | 382,423 | 162,577 |
| Payables | US$ in thousands | 35,437 | 55,750 | 31,783 | 19,623 | 1,931 |
| Payables turnover | 64.39 | 24.46 | 30.70 | 19.49 | 84.19 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,281,690K ÷ $35,437K
= 64.39
The payables turnover ratio for Civitas Resources Inc has shown fluctuations over the years. It decreased significantly from 84.19 in December 31, 2020, to 19.49 in December 31, 2021, indicating a substantial decrease in the speed at which the company is paying its suppliers. However, there was an improvement in the ratio as it increased to 30.70 in December 31, 2022, suggesting a better efficiency in managing payables.
The ratio then declined to 24.46 in December 31, 2023, before increasing notably to 64.39 in December 31, 2024, surpassing the initial high ratio in 2020. This improvement may signify a more efficient utilization of supplier credit and potentially better negotiating terms with creditors. Overall, monitoring the payables turnover ratio can provide insights into the company's liquidity management and working capital efficiency.
Peer comparison
Dec 31, 2024