Crescent Energy Co (CRGY)

Short-term

Turnover ratios

From the activity ratios of Crescent Energy Co provided in the table, we can observe the following trends:

1. Inventory Turnover:
- The inventory turnover ratio has shown significant fluctuations over the periods. In the latest period (Sep 30, 2024), the inventory turnover ratio stands at 15.05, indicating that the company is efficiently managing its inventory by selling and replenishing it multiple times during the period.
- There was a notable increase in inventory turnover from the previous quarter (Jun 30, 2024), where the ratio was not available.
- Overall, the company has shown improvements in managing its inventory turnover efficiently.

2. Receivables Turnover:
- The receivables turnover ratio is missing for most periods, except for Mar 31, 2023, Dec 31, 2023, and Sep 30, 2023. This indicates a lack of consistent data available for analysis.
- In the available periods, the company's receivables turnover ratio has ranged between 5.67 and 7.13, suggesting that the company collects its receivables roughly between 5.67 to 7.13 times during the period.

3. Payables Turnover:
- The payables turnover ratio has been provided for several periods, indicating the speed at which the company pays its suppliers.
- There is a general improvement in payables turnover from 0.95 on Sep 30, 2022, to around 2.39 to 2.47 in the more recent periods. This shows that the company is paying its suppliers at a faster rate in recent periods.

4. Working Capital Turnover:
- The working capital turnover ratio is only available for Sep 30, 2023, where it shows a very high value of 111.16. This could indicate the company's efficient utilization of working capital during that period.
- However, data for other periods is missing, making it challenging to assess the trend of working capital turnover over time.

In conclusion, Crescent Energy Co has shown improvements in managing its inventory turnover efficiently and paying its suppliers at a faster rate in recent periods. However, the lack of consistent data for receivables turnover and working capital turnover limits the overall analysis of the company's activity ratios. Monitoring these ratios consistently can provide better insights into the company's operating efficiency and working capital management.

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Average number of days

Days of Inventory on Hand (DOH) for Crescent Energy Co has shown fluctuations over the past several quarters, ranging from as low as 24.26 days to as high as 199.51 days. A lower DOH indicates efficient inventory management, while a higher DOH may suggest overstocking or potential liquidity issues.

Days of Sales Outstanding (DSO) data is missing for most quarters, with only data available for the last three quarters. DSO measures how long it takes for the company to collect on its sales. In this case, the trend cannot be analyzed effectively due to missing data, which limits insights into the company's accounts receivable management.

Number of Days of Payables has fluctuated significantly over the quarters, with figures ranging from 142.40 days to 384.87 days. A longer period of payables may indicate that the company is taking longer to pay its suppliers, potentially signaling cash flow challenges or strained supplier relationships. Conversely, a shorter period may suggest stronger cash management practices.

Overall, the activity ratios for Crescent Energy Co indicate some inconsistencies and variability in inventory management, accounts receivable, and accounts payable practices. Further analysis and context would be required to fully understand the company's working capital management and operational efficiency.

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Long-term

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. A lower fixed asset turnover ratio indicates that the company is not effectively utilizing its fixed assets to generate revenue.

Looking at Crescent Energy Co's fixed asset turnover ratio over the past nine quarters, we observe a decreasing trend, from 0.54 in September 2022 to 0.32 in September 2024. This downward trend suggests that the company's efficiency in generating sales from its fixed assets has declined over time.

On the other hand, the total asset turnover ratio reflects the company's ability to generate sales in relation to its total assets. A lower total asset turnover ratio may indicate that the company is not efficiently utilizing its total assets to generate revenue.

Examining Crescent Energy Co's total asset turnover ratio across the same periods, we notice a similar decreasing trend, from 0.47 in September 2022 to 0.29 in September 2024. This trend indicates a decline in the company's ability to generate sales relative to its total asset base.

Overall, the decreasing trends in both the fixed asset turnover and total asset turnover ratios suggest that Crescent Energy Co may be experiencing challenges in efficiently utilizing its assets to generate sales revenue. Management should investigate the reasons behind these declining ratios and take corrective actions to improve asset utilization and overall operational efficiency.