Coterra Energy Inc (CTRA)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 21.00 20.57 20.49 16.96 14.71 13.36 13.29 15.70 14.16 23.72 26.38 25.60 22.15 34.48 22.92 25.21 26.97 12.16 9.73 9.59
Receivables turnover 4.94 7.34 6.11 6.34 5.84 8.89 12.48 11.81 6.38 5.57 3.87 4.01 3.08 4.94 7.47 7.69 6.64 5.01 5.89 6.20
Payables turnover 1.16 1.22 1.19 1.12 1.08 1.33 1.38 1.06 1.06 1.34 1.16 1.20 1.16 1.94 2.40 2.37 2.50 1.20 1.08 0.95
Working capital turnover 2.50 8.64 8.42 6.62 16.66 90.38 11.10 11.49 8.89 9.62 5.48 4.98 3.77 — 88.13 15.91 56.41 — 19.50 11.71

Coterra Energy Inc's inventory turnover ratio has shown fluctuations over the past several quarters, ranging from 9.59 to 34.48. The highest turnover was observed on September 30, 2021, while the lowest was on March 31, 2020. The company's ability to convert inventory into sales has generally been strong, although there is some variability in efficiency.

In terms of receivables turnover, the company's performance has been inconsistent, with ratios ranging from 3.08 to 12.48. The highest turnover was recorded on June 30, 2023, while the lowest was on December 31, 2021. This indicates that Coterra Energy has experienced challenges in collecting outstanding receivables efficiently, particularly in the latter part of the observed period.

The payables turnover ratio has also varied for Coterra Energy, with values ranging from 1.06 to 2.50. The highest turnover was reported on December 31, 2020, while the lowest was on December 31, 2023. This suggests that the company's payment cycle to suppliers has seen some fluctuations, affecting its cash conversion cycle.

Moreover, the working capital turnover ratio for Coterra Energy fluctuated between 3.77 and 90.38, indicating volatile efficiency in utilizing working capital to generate revenue. The company experienced a significant peak on September 30, 2023, driving a substantial portion of revenues with working capital. This metric reflects the management's ability to generate sales using available working capital resources efficiently.

Overall, the activity ratios suggest that while Coterra Energy generally performs well in managing its inventory and working capital turnover, there are areas of improvement required in terms of receivables turnover and payables turnover to enhance operational efficiency and cash flow management.

Average number of days

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
Days of inventory on hand (DOH) days 17.38 17.75 17.81 21.52 24.81 27.32 27.46 23.25 25.78 15.39 13.84 14.26 16.48 10.59 15.93 14.48 13.53 30.02 37.51 38.06
Days of sales outstanding (DSO) days 73.83 49.73 59.76 57.54 62.46 41.05 29.25 30.92 57.18 65.49 94.36 91.02 118.53 73.93 48.88 47.49 54.97 72.83 61.98 58.90
Number of days of payables days 314.75 298.25 306.81 326.10 337.67 274.50 264.46 345.90 345.36 272.70 314.06 303.96 315.69 188.18 152.21 154.27 146.15 304.97 337.89 383.35

Based on the provided data, Coterra Energy Inc's activity ratios show fluctuations over the years:

1. Days of Inventory on Hand (DOH): Coterra Energy's inventory management has improved gradually from 38.06 days on March 31, 2020, to 17.38 days on December 31, 2024. However, there was a slight increase in DOH to 27.32 days by September 30, 2023, indicating a possible buildup of inventory.

2. Days of Sales Outstanding (DSO): DSO reflects the average number of days the company takes to collect revenue after a sale. Coterra Energy's DSO decreased significantly from 118.53 days on December 31, 2021, to 49.73 days on September 30, 2024, suggesting an improvement in their accounts receivable management efficiency after facing challenges in collecting revenue in 2021.

3. Number of Days of Payables: The number of days of payables demonstrates how long it takes for the company to pay its suppliers. Coterra Energy has shown fluctuations in this ratio over the years, with a notable increase from 146.15 days on December 31, 2020, to 345.90 days on March 31, 2023. This increase indicates that the company took longer to pay its suppliers, potentially impacting supplier relationships.

In summary, Coterra Energy Inc has shown improvements in inventory management and accounts receivable efficiency in recent years. However, the company needs to manage its payables effectively to maintain healthy supplier relationships and overall working capital management.

Long-term

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
Fixed asset turnover 0.31 0.32 0.31 0.31 0.33 0.37 0.44 0.52 0.52 0.52 0.40 0.27 0.20 0.40 0.37 0.38 0.36 0.36 0.40 0.46
Total asset turnover 0.25 0.28 0.27 0.27 0.29 0.33 0.39 0.45 0.45 0.44 0.33 0.23 0.17 0.36 0.33 0.34 0.32 0.33 0.36 0.40

Long-term activity ratios for Coterra Energy Inc provide insights into how efficiently the company is utilizing its assets to generate revenue.

1. Fixed Asset Turnover: This ratio measures how effectively the company is using its fixed assets to generate sales. Coterra Energy's fixed asset turnover has fluctuated over the years, starting at 0.46 in March 2020 and reaching a peak of 0.52 in September 2022 before declining slightly to 0.31 by December 2024. A higher ratio indicates better utilization of fixed assets to generate revenue.

2. Total Asset Turnover: This ratio indicates how well the company is generating revenue from all its assets. Coterra Energy's total asset turnover ratio has also varied, with the trend following a similar pattern to the fixed asset turnover ratio. It started at 0.40 in March 2020, decreased to 0.17 by December 2021, and then gradually increased to 0.25 by December 2024. A higher total asset turnover ratio suggests efficient asset utilization to generate sales.

Overall, the analysis of these long-term activity ratios for Coterra Energy Inc reveals fluctuations in asset utilization efficiency over the years, with varying levels of effectiveness in generating revenue from fixed and total assets. It is essential for the company to monitor and improve these ratios to ensure optimal utilization of assets and sustainable revenue generation in the long run.