California Resources Corp (CRC)

Short-term

Turnover ratios

Based on the provided data, we can analyze the activity ratios of California Resources Corporation for the years ending December 31, 2021, 2022, and 2023.

1. Inventory Turnover:
The inventory turnover ratio measures how efficiently a company manages its inventory. A ratio of 0.00 across all three years suggests that California Resources Corporation either holds a very low level of inventory or experiences difficulties in selling its inventory.

2. Receivables Turnover:
The receivables turnover ratio indicates how efficiently a company collects its outstanding accounts receivable during a period. An increasing trend from 7.71 in 2021 to 12.97 in 2023 indicates an improvement in collecting receivables promptly, reflecting a positive development in the company's management of credit sales.

3. Payables Turnover:
The payables turnover ratio evaluates how quickly a company pays its suppliers. A ratio of 0.00 for all three years suggests that California Resources Corporation may not have a significant focus on timely payments to its suppliers.

4. Working Capital Turnover:
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. A value of 8.95 in 2023 implies that for every dollar of working capital invested, the company generated $8.95 in revenue, indicating effective utilization of working capital to support its operations.

In conclusion, while the company exhibits low efficiency in managing inventory and paying suppliers, it has shown improvement in collecting receivables promptly and utilizing working capital effectively to generate sales over the years analyzed.

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Average number of days

Based on the activity ratios provided for California Resources Corporation, we can make the following observations:

1. Days of Sales Outstanding (DSO):
- The DSO ratio measures the average number of days it takes for a company to collect revenue after a sale is made.
- In 2023, the DSO decreased to 28.15 days from 43.96 days in 2022 and 47.34 days in 2021.
- A decreasing trend in DSO indicates that California Resources Corporation is collecting its accounts receivable more efficiently, which is a positive sign of effective credit management or improved collection processes.

2. Days of Inventory on Hand (DOH):
- The DOH ratio indicates the average number of days the company holds its inventory before it is sold.
- Unfortunately, the data for DOH is missing for all three years, making it challenging to evaluate California Resources Corporation's inventory management efficiency.
- Without the DOH information, it is difficult to assess how quickly the company is turning its inventory into sales or if there have been any improvements over the years.

3. Number of Days of Payables:
- The number of days of payables ratio calculates the average number of days the company takes to pay its suppliers.
- Similar to the DOH ratio, data for the number of days of payables is not available for the years provided.
- Without this information, it is challenging to determine how efficiently California Resources Corporation is managing its payables and the impact on its cash flow.

In conclusion, while the decrease in Days of Sales Outstanding suggests improvements in accounts receivable collection, the lack of data for Days of Inventory on Hand and Number of Days of Payables limits the comprehensive assessment of California Resources Corporation's overall activity ratios and operational efficiency.

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Long-term

The fixed asset turnover ratio for California Resources Corporation has shown a slight improvement over the past three years, increasing from 0.73 in 2021 to 1.01 in 2023. This indicates that the company is generating more revenue for each dollar invested in fixed assets, reflecting a more efficient utilization of its long-term assets for revenue generation.

In terms of total asset turnover, California Resources Corporation has also displayed a positive trend, with the ratio increasing from 0.49 in 2021 to 0.70 in 2023. This indicates that the company is becoming more effective at generating sales in relation to its total assets, reflecting an overall improvement in the efficiency of its asset utilization.

Overall, these long-term activity ratios suggest that California Resources Corporation has been able to enhance its efficiency in utilizing both fixed and total assets to generate revenue, which is a positive indicator of the company's operational performance and management of its long-term resources.