Civitas Resources Inc (CIVI)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	2,270,235	1,395,365	1,403,100	1,400,751	1,355,454	989,376	963,868	930,266	974,920	474,703	452,911	454,417	381,362	136,549	128,593	105,023	162,078	117,971	119,422	121,083
Payables	US$ in thousands	35,437	76,824	27,576	108,150	55,750	85,938	27,811	23,449	31,783	15,885	12,166	29,425	19,623	11,740	13,150	14,006	1,931	3,229	8,565	14,608
Payables turnover		64.06	18.16	50.88	12.95	24.31	11.51	34.66	39.67	30.67	29.88	37.23	15.44	19.43	11.63	9.78	7.50	83.93	36.53	13.94	8.29

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,270,235K ÷ $35,437K
= 64.06

The payables turnover ratio measures how efficiently Civitas Resources Inc is managing its accounts payable by showing how many times the company pays off its suppliers during a period. Looking at the data provided, we can see fluctuations in the payables turnover ratio over the years.

Civitas Resources Inc's payables turnover ratio ranged from as low as 7.50 on March 31, 2021, to as high as 83.93 on December 31, 2020. This indicates that the company took about 7.50 days to pay off its suppliers in the first quarter of 2021, while it took approximately 83.93 days to do the same at the end of 2020.

The trend in the payables turnover ratio seems to fluctuate throughout the periods, with some significant spikes and dips. For example, the ratio increased from 15.44 on March 31, 2022, to 37.23 on June 30, 2022, suggesting more efficient management of payables during that time. However, the ratio dropped to 11.51 on September 30, 2023, indicating a longer time taken to pay off suppliers.

Overall, a high payables turnover ratio may suggest that Civitas Resources Inc is effectively managing its accounts payable and paying off its suppliers promptly. On the other hand, a low ratio could indicate a need for improved cash flow management or negotiation with suppliers to extend payment terms.