Civitas Resources Inc (CIVI)

Receivables 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
Revenue (ttm)	US$ in thousands	5,094,450	4,839,420	4,526,829	3,865,899	3,296,241	3,066,349	3,106,445	3,597,935	3,775,144	3,476,852	2,665,287	1,674,922	923,213	476,935	347,546	228,560	215,005	232,434	248,784	298,938
Receivables	US$ in thousands	646,300	549,074	559,736	601,991	505,961	573,077	201,200	222,448	343,500	337,946	432,694	410,418	362,300	86,414	77,500	37,600	32,673	28,031	25,106	16,463
Receivables turnover		7.88	8.81	8.09	6.42	6.51	5.35	15.44	16.17	10.99	10.29	6.16	4.08	2.55	5.52	4.48	6.08	6.58	8.29	9.91	18.16

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,094,450K ÷ $646,300K
= 7.88

The receivables turnover ratio of Civitas Resources Inc has fluctuated over the period under review. The ratio started at 18.16 on March 31, 2020, indicating that the company collected its accounts receivable 18.16 times during that year. However, the ratio declined to 6.08 by March 31, 2021, suggesting a slowdown in the collection of receivables.

The trend continued to decrease to a low of 2.55 by December 31, 2021, which could raise concerns about the company's credit policies or the creditworthiness of its customers. However, there was a subsequent improvement in the ratio, reaching 10.99 by December 31, 2022, indicating a more efficient collection of receivables.

The ratio fluctuated further but generally remained at a moderate level between 5.35 and 8.81 in the following periods up to December 31, 2024. A high receivables turnover ratio is generally more favorable as it indicates the company is collecting payments quickly, while a low ratio may suggest potential issues with credit and collection processes. It is essential for Civitas Resources Inc to monitor this metric closely to ensure efficient management of its accounts receivable.