Civitas Resources Inc (CIVI)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	62,849	45,768	46,298	61,757
Payables	US$ in thousands	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	17,117	15,287	6,593	2,233
Payables turnover		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	3.67	2.99	7.02	27.66

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,355,454K ÷ $55,750K
= 24.31

Based on the data provided, Civitas Resources Inc has consistently reported a payables turnover ratio of 0.00 over the past eight quarters. This indicates that the company is not effectively managing its accounts payable. A low or zero payables turnover ratio may suggest that the company is taking an extended period to pay its suppliers, potentially straining supplier relationships or missing out on potential discounts for prompt payment. It is important for the company to assess its payables management practices and consider improving efficiency in this area to optimize working capital and strengthen financial performance.