Coterra Energy Inc (CTRA)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,914,000	9,051,000	3,449,000	1,466,000	2,066,000
Total current assets	US$ in thousands	2,015,000	2,211,000	2,136,000	416,000	568,248
Total current liabilities	US$ in thousands	1,660,000	1,193,000	1,220,000	390,000	328,034
Working capital turnover		16.66	8.89	3.77	56.38	8.60

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,914,000K ÷ ($2,015,000K – $1,660,000K)
= 16.66

The working capital turnover of Coterra Energy Inc has shown significant fluctuations over the past five years. In 2023, the company's working capital turnover ratio increased to 16.66 from 8.89 in 2022, indicating that Coterra was able to generate revenue more efficiently from its working capital. This could be attributed to improvements in managing its current assets and liabilities.

However, in 2021, the ratio dropped to 3.77, suggesting a decline in the company's ability to use its working capital effectively to generate sales. This could be a red flag indicating potential inefficiencies in managing working capital during that period.

The notable spike in working capital turnover to 57.54 in 2020 indicates an exceptional efficiency in utilizing working capital to generate revenue. This could be due to strong inventory management, prompt collection of receivables, and efficient payment of payables.

In 2019, the working capital turnover ratio was 8.60, showing a moderately effective use of working capital to generate sales.

Overall, the trend in working capital turnover for Coterra Energy Inc indicates varying levels of efficiency in utilizing its working capital over the past five years, with potential areas for improvement identified in some years. Further analysis of the underlying factors influencing these fluctuations would be necessary for a more comprehensive assessment.