Civitas Resources Inc (CIVI)

Working capital 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
Total current assets US$ in thousands 988,318 959,618 953,780 954,935 2,144,410 948,745 3,413,210 956,241 1,328,430 1,187,770 1,019,460 674,103 719,937 159,918 142,054 104,903 92,405 89,840 103,287 164,853
Total current liabilities US$ in thousands 2,205,090 2,114,110 2,289,740 2,579,700 1,851,890 2,019,470 1,221,090 1,058,030 1,177,930 1,268,850 1,473,980 1,335,530 1,119,510 262,103 230,366 94,276 74,484 71,521 59,353 96,364
Working capital turnover — — — — 11.27 — 1.42 — 25.08 — — — — — — 21.51 12.00 12.69 5.66 4.36

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,094,450K ÷ ($988,318K – $2,205,090K)
= —

Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales. It indicates the number of times a company's working capital is being used to support revenue generation over a specific period.

Analyzing Civitas Resources Inc's working capital turnover based on the provided data, we can see a trend of increasing efficiency in the utilization of working capital over time. The ratio has shown significant improvements from 4.36 on March 31, 2020, to a peak of 25.08 on December 31, 2022. This suggests that the company has been able to generate higher sales relative to its working capital investments during these periods.

However, the ratio decreased to 1.42 on June 30, 2023, indicating a temporary decline in the efficiency of working capital utilization. It is important to investigate the factors contributing to this decrease to assess whether it is a one-time event or a persistent issue that may impact the company's financial performance.

As the data for the latter periods is not available, further analysis beyond December 31, 2022, is not feasible at this time. Continuous monitoring and analysis of the working capital turnover ratio can provide insights into Civitas Resources Inc's operational efficiency and financial health in the future.