Civitas Resources Inc (CIVI)

Short-term

Turnover ratios

Based on the provided data for Civitas Resources Inc, let's analyze the activity ratios:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory. Civitas Resources Inc has shown fluctuating inventory turnover ratios over the observed periods, ranging from a low of 2.68 to a high of 84.34. Generally, higher inventory turnover ratios indicate better inventory management, but extreme values need to be carefully evaluated.

2. Receivables Turnover: The receivables turnover ratio reflects how well a company collects its outstanding accounts receivable. Civitas Resources Inc's receivables turnover ratios have varied significantly over time, with a decreasing trend from 18.16 to 7.88. A declining trend may suggest potential issues with credit policies or collection efficiency.

3. Payables Turnover: The payables turnover ratio evaluates how quickly a company pays its suppliers. Civitas Resources Inc's payables turnover ratios have also fluctuated, indicating changes in the company's payment practices. Increasing turnover ratios suggest a shorter payment period, while decreasing ratios may imply elongated payment cycles.

4. Working Capital Turnover: The working capital turnover ratio assesses how effectively a company utilizes its working capital to generate sales. Civitas Resources Inc's working capital turnover ratios have been inconsistent, with gaps in the data indicating missing values. A rising trend in this ratio could indicate improved efficiency in utilizing working capital.

In conclusion, while the activity ratios provide insights into Civitas Resources Inc's operational efficiency and financial performance, further analysis and comparison with industry benchmarks are recommended to better understand the company's performance dynamics and potential areas for improvement.

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Average number of days

Civitas Resources Inc's Days of Inventory on Hand (DOH) ratio has shown fluctuating trends over the reporting periods, indicating varying efficiency in managing inventory levels. The ratio ranged from a low of 4.33 days on March 31, 2023, to a high of 135.99 days on June 30, 2023, displaying significant volatility in inventory management. Subsequently, the ratio improved significantly to 11.69 days on March 31, 2022, suggesting a more efficient inventory turnover.

In terms of Days of Sales Outstanding (DSO), Civitas Resources Inc experienced an increase in the number of days it took to collect receivables during most of the periods. Notably, the company faced a substantial spike in DSO to 143.24 days on December 31, 2021, signaling potential challenges in collecting outstanding sales. However, the company managed to reduce its DSO to 33.21 days on December 31, 2022, demonstrating efforts to improve collection efficiency.

When considering the Number of Days of Payables, Civitas Resources Inc exhibited varying payment practices over the reporting periods. The company notably extended its payables period on March 31, 2020, with 44.04 days, followed by a significant decrease to 4.35 days on December 31, 2020, indicating a more aggressive payment strategy. Subsequently, the payables period fluctuated but remained relatively stable, maintaining an average range between 7.17 to 31.70 days, showcasing a balanced approach to managing supplier payments.

Overall, the activity ratios of Civitas Resources Inc reflect dynamic operational practices in managing inventory, collecting receivables, and paying suppliers, with fluctuations suggesting evolving strategic efforts to optimize working capital efficiency and operational performance over the reporting periods.

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Long-term

The fixed asset turnover ratio for Civitas Resources Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 0.29 in March 2020, decreased to 0.16 by December 31, 2021, but then increased to 0.37 by December 31, 2024. This ratio measures the efficiency of the company in generating sales from its investment in fixed assets, such as property, plant, and equipment.

On the other hand, the total asset turnover ratio of Civitas Resources Inc also experienced variations during the same period. Starting at 0.24 in March 2020, the ratio dropped to 0.14 by December 31, 2021, but then increased to 0.34 by December 31, 2024. This ratio reflects the company's ability to generate sales from all its assets, including fixed and current assets.

Overall, the fixed asset turnover ratio indicates that Civitas Resources Inc has been improving its efficiency in generating sales from its fixed assets, while the total asset turnover ratio reflects an increasing trend in generating sales from all its assets over the years. These improvements suggest that the company is utilizing its assets more effectively to drive revenue growth and potentially enhance profitability.