Comstock Resources Inc (CRK)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | 1.87 | 2.58 | 1.10 | 1.15 | 16.52 | 17.74 | 13.77 | 7.09 | 1.16 | 2.93 | 6.91 | 10.60 | 3.72 | — | 0.70 | 15.67 | — | 1.94 | 11.20 |
| Receivables turnover | 6.61 | 9.84 | 13.63 | 13.06 | 5.30 | 3.86 | 4.26 | 6.60 | 5.65 | 4.97 | 4.93 | 4.29 | 5.86 | 8.27 | 8.59 | 7.57 | 4.62 | 4.42 | 5.19 | 3.23 |
| Payables turnover | 0.07 | 0.09 | 0.08 | 0.10 | 0.08 | 0.06 | 0.08 | 0.11 | 0.11 | 0.09 | 0.11 | 0.11 | 0.13 | 0.16 | 0.41 | 0.33 | 0.28 | 0.31 | 0.18 | 0.17 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Comstock Resources, Inc., the analysis of the activity ratios is as follows:
1. Inventory turnover: Unfortunately, no data is available for inventory turnover for any of the quarters provided. This ratio is crucial in evaluating how efficiently the company is managing its inventory levels.
2. Receivables turnover: The receivables turnover ratio has shown varying trends over the quarters, ranging from 5.29 to 15.13. A higher turnover ratio indicates that the company is collecting its accounts receivable more efficiently. The noticeable increase in Q2 2023 compared to the previous quarters could suggest an improvement in the company's credit policies or collection procedures.
3. Payables turnover: The payables turnover ratio for Comstock Resources, Inc. indicates that there were no payables turnover during the quarters provided. This might be due to the nature of the company's operations or payment practices.
4. Working capital turnover: There is insufficient data available to calculate the working capital turnover ratio for Comstock Resources, Inc. This ratio measures how effectively the company is utilizing its working capital to generate sales. Without this data, it is challenging to assess the company's efficiency in this aspect.
In conclusion, while the receivables turnover ratio provides some insights into the company's efficiency in collecting accounts receivable, the lack of data for inventory turnover, payables turnover, and working capital turnover limits the overall analysis of Comstock Resources, Inc.'s activity ratios. It would be beneficial to have more comprehensive data to evaluate the company's operational efficiency more accurately.
Average number of days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 195.49 | 141.31 | 330.49 | 316.36 | 22.09 | 20.57 | 26.50 | 51.47 | 314.50 | 124.53 | 52.81 | 34.42 | 98.05 | — | 518.73 | 23.30 | — | 188.04 | 32.58 |
| Days of sales outstanding (DSO) | days | 55.25 | 37.11 | 26.79 | 27.95 | 68.88 | 94.57 | 85.65 | 55.34 | 64.63 | 73.48 | 74.05 | 85.17 | 62.30 | 44.15 | 42.51 | 48.21 | 78.97 | 82.59 | 70.38 | 112.91 |
| Number of days of payables | days | 4,918.62 | 4,106.27 | 4,446.29 | 3,648.77 | 4,817.20 | 5,759.92 | 4,484.25 | 3,247.51 | 3,228.48 | 3,870.58 | 3,389.46 | 3,203.89 | 2,897.78 | 2,244.94 | 883.28 | 1,097.05 | 1,308.92 | 1,172.35 | 2,028.95 | 2,151.09 |
The Days of Sales Outstanding (DSO) for Comstock Resources, Inc. have shown significant variability over the past eight quarters. In Q4 2023, the DSO stands at 55.31 days, indicating that on average, it takes the company around 55 days to collect its accounts receivable. This is a notable increase from the previous quarter, Q3 2023, where the DSO was 36.96 days. It suggests a potential slowdown in the collection of receivables.
In Q2 2023 and Q1 2023, the DSO was 24.12 days and 25.82 days, respectively, reflecting a relatively efficient collection of receivables during those periods. This efficiency was notably better than the corresponding quarters in the previous year, Q2 2022 (65.27 days) and Q1 2022 (42.98 days), depicting an improvement in managing accounts receivable.
Having a higher DSO can indicate that the company may be facing challenges in collecting payments from customers promptly, impacting its cash flow. Conversely, a lower DSO signifies that the company is collecting payments more quickly, which can be beneficial for working capital management and liquidity.
Given that data for Days of Inventory on Hand (DOH) and Number of Days of Payables are unavailable across all periods, a comprehensive analysis of the cash conversion cycle is not feasible. However, focusing on improving accounts receivable turnover and managing inventories and payables effectively can enhance Comstock Resources, Inc.'s liquidity and overall financial performance.
Long-term
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 0.29 | 0.40 | 0.53 | 0.65 | 0.58 | 0.53 | 0.46 | 0.37 | 0.38 | 0.27 | 0.20 | 0.14 | 0.20 | 0.20 | 0.21 | 0.21 | 0.17 | 0.14 | 0.23 | 0.18 |
| Total asset turnover | 0.25 | 0.35 | 0.45 | 0.56 | 0.47 | 0.42 | 0.37 | 0.32 | 0.32 | 0.24 | 0.17 | 0.13 | 0.18 | 0.18 | 0.18 | 0.18 | 0.15 | 0.12 | 0.18 | 0.14 |
The fixed asset turnover ratio for Comstock Resources, Inc. has shown a decreasing trend from Q1 2022 to Q4 2023, declining from 0.49 to 0.29. This indicates that the company generated less revenue for each dollar invested in fixed assets over this period. The downward trend suggests inefficiencies in utilizing fixed assets to generate sales.
Similarly, the total asset turnover ratio also exhibited a decreasing trend from Q1 2022 to Q4 2023, dropping from 0.43 to 0.25. This implies that the company generated less revenue for each dollar invested in total assets. The decline in this ratio indicates decreasing efficiency in utilizing all assets (fixed and current) to generate sales.
Overall, both the fixed asset turnover and total asset turnover ratios for Comstock Resources, Inc. have shown a consistent decreasing trend over the past few quarters, pointing towards potential operational inefficiencies in utilizing assets to generate revenues. Monitoring and improving these ratios could be crucial for enhancing the company's overall operational efficiency and profitability in the long term.