Civitas Resources Inc (CIVI)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,363,730 | 975,603 | 382,423 | 162,577 | 63,536 |
| Payables | US$ in thousands | 55,750 | 31,783 | 19,623 | 1,931 | 17,117 |
| Payables turnover | 24.46 | 30.70 | 19.49 | 84.19 | 3.71 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,363,730K ÷ $55,750K
= 24.46
The payables turnover ratio for Civitas Resources Inc has been calculated as 0.00 for the years 2019 through 2023. This indicates that the company is not effectively managing its accounts payable, as there is either a very low level of purchases on credit or a significant delay in paying its suppliers. A consistently low payables turnover ratio can suggest liquidity issues or inefficiencies in working capital management. Further analysis of the company's payment policies and supplier relationships may be warranted to understand the underlying reasons for the consistently low payables turnover ratio.
Peer comparison
Dec 31, 2023