Crescent Energy Co (CRGY)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Inventory turnover | 3.40 | 6.17 | — |
| Receivables turnover | — | 8.25 | 5.75 |
| Payables turnover | 2.58 | 2.38 | 0.99 |
| Working capital turnover | — | — | — |
Based on the provided data for Crescent Energy Co, let's analyze the activity ratios:
1. Inventory Turnover:
- Dec 31, 2023: 3.40
- Dec 31, 2022: 6.17
- Dec 31, 2021: Not available
The inventory turnover ratio measures how efficiently the company is managing its inventory. A higher inventory turnover ratio indicates that inventory is selling at a faster rate. Crescent Energy Co's inventory turnover has decreased from 6.17 in 2022 to 3.40 in 2023, which may suggest a decrease in sales relative to inventory levels.
2. Receivables Turnover:
- Dec 31, 2023: Not available
- Dec 31, 2022: 8.25
- Dec 31, 2021: 5.75
The receivables turnover ratio reflects how quickly the company collects outstanding receivables. The increase from 5.75 in 2021 to 8.25 in 2022 indicates that Crescent Energy Co improved its efficiency in collecting receivables, translating into quicker cash conversion from sales.
3. Payables Turnover:
- Dec 31, 2023: 2.58
- Dec 31, 2022: 2.38
- Dec 31, 2021: 0.99
The payables turnover ratio signifies how quickly the company pays its suppliers. A higher ratio generally indicates efficient management of payables. Crescent Energy Co's payables turnover has been on an upward trend, reaching 2.58 in 2023, reflecting an improvement in payment efficiency over the years.
4. Working Capital Turnover:
- Dec 31, 2023: Not available
- Dec 31, 2022: Not available
- Dec 31, 2021: Not available
Unfortunately, the data for working capital turnover is not provided for any of the years, making it challenging to assess how effectively Crescent Energy Co is generating revenue relative to its working capital.
In conclusion, while the inventory turnover decreased in 2023, there were improvements in the receivables and payables turnover ratios over the years, suggesting enhanced efficiency in managing receivables and payables. Monitoring these activity ratios can provide insights into Crescent Energy Co's operational efficiency and cash flow management.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 107.31 | 59.12 | — |
| Days of sales outstanding (DSO) | days | — | 44.22 | 63.47 |
| Number of days of payables | days | 141.62 | 153.13 | 366.90 |
Days of inventory on hand (DOH) for Crescent Energy Co has increased significantly from 59.12 days in 2022 to 107.31 days in 2023, indicating that the company is holding inventory for a longer period before it is sold. This could potentially indicate inefficiencies in managing inventory levels.
Days of sales outstanding (DSO) has decreased from 63.47 days in 2021 to an unspecified value in 2023, but it was at 44.22 days in 2022. A lower DSO suggests that the company is collecting its accounts receivable more efficiently, turning sales into cash more quickly.
Regarding the number of days of payables, Crescent Energy Co has steadily decreased this metric from 366.90 days in 2021 to 141.62 days in 2023. This reduction in days of payables indicates that the company is paying its suppliers more promptly, which could be a strategy to maintain good relationships with suppliers.
In summary, while the company has improved its collection of accounts receivable and the promptness of payments to suppliers, there seems to be a challenge in managing inventory efficiently as reflected in the increase in days of inventory on hand.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Fixed asset turnover | 0.40 | 0.70 | 0.43 |
| Total asset turnover | 0.36 | 0.63 | 0.38 |
Crescent Energy Co's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, indicate its efficiency in utilizing assets to generate revenue over the indicated years. The fixed asset turnover has decreased from 0.70 in 2022 to 0.40 in 2023, suggesting a decline in the company's ability to generate sales from its fixed assets. This decrease may raise concerns regarding the utilization and productivity of Crescent Energy Co's long-term assets in the most recent year.
Similarly, the total asset turnover has also declined from 0.63 in 2022 to 0.36 in 2023, indicating a reduction in the company's overall asset efficiency in generating revenue. This trend suggests that Crescent Energy Co may not be effectively utilizing its total assets to generate sales compared to the previous years. A low total asset turnover may indicate inefficiencies in managing and utilizing both current and fixed assets to drive sales and profitability.
Overall, the decreasing trend in both fixed asset turnover and total asset turnover ratios for Crescent Energy Co raises concerns about the company's long-term asset utilization and efficiency in generating revenue. Further analysis and evaluation of the company's operational strategies and asset management practices are recommended to address these declining trends and improve overall performance in the future.