Civitas Resources Inc (CIVI)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,296,250	3,775,140	923,213	215,005	312,095
Total current assets	US$ in thousands	2,144,410	1,328,430	719,937	92,405	110,516
Total current liabilities	US$ in thousands	1,851,890	1,177,930	1,119,510	74,484	104,739
Working capital turnover		11.27	25.08	—	12.00	54.02

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,296,250K ÷ ($2,144,410K – $1,851,890K)
= 11.27

The working capital turnover ratio for Civitas Resources Inc has shown significant variability over the past five years. In 2019, the ratio was very high at 54.22, indicating that the company generated $54.22 in revenue for every dollar of working capital. This high ratio suggests the company was very efficient in utilizing its working capital to generate sales.

However, the ratio dropped to 12.17 in 2020, indicating a decrease in efficiency in converting working capital into revenue. The ratio then increased again to 25.19 in 2022, showing improved efficiency compared to 2020 but still lower than the 2019 level.

The latest available data for 2023 shows a working capital turnover ratio of 11.89, which is lower compared to the previous year, indicating a potential decrease in efficiency in the company's working capital management and revenue generation.

Overall, the fluctuating trend in the working capital turnover ratio suggests some inconsistencies in how Civitas Resources Inc is managing its working capital to drive sales. Further analysis of the company's operational and financial performance may provide insights into the factors contributing to the fluctuations in the working capital turnover ratio.