Coterra Energy Inc (CTRA)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	5,914,000	6,598,000	7,762,000	9,149,000	9,051,000	8,996,000	6,916,000	4,668,000	3,449,000	1,680,778	1,531,819	1,540,167	1,466,624	1,471,214	1,609,284	1,811,053	2,066,277	2,321,210	2,437,272	2,356,602
Total current assets	US$ in thousands	2,015,000	1,713,000	1,640,000	2,005,000	2,211,000	2,350,000	2,832,000	2,597,000	2,136,000	442,723	396,066	411,915	416,000	322,552	463,934	541,789	568,248	421,679	631,330	680,191
Total current liabilities	US$ in thousands	1,660,000	1,640,000	941,000	1,209,000	1,193,000	1,415,000	1,570,000	1,659,000	1,220,000	466,010	378,684	315,092	390,000	385,928	381,388	387,177	328,034	294,785	234,026	240,315
Working capital turnover		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	8.60	18.29	6.13	5.36

December 31, 2023 calculation

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

Coterra Energy Inc's working capital turnover has shown substantial fluctuations over the past eight quarters. The ratio measures how efficiently the company manages its working capital to generate revenue. In Q3 2023, the working capital turnover spiked to a high of 90.38, indicating that Coterra Energy was able to efficiently use its working capital to generate sales during that period. This could be attributed to effective management of current assets and liabilities.

However, in Q2 and Q1 2023, the working capital turnover decreased significantly to 11.10 and 11.49, respectively. This suggests that Coterra Energy's efficiency in using its working capital to generate revenue declined during these quarters. The company may have faced challenges in managing its current assets and liabilities effectively, leading to a lower turnover ratio.

Comparing the recent performance to the same period in the previous year, Q4 2022 had a working capital turnover of 8.89, indicating a lower efficiency in utilizing working capital compared to Q3 2023. The trend over the past quarters shows fluctuations in the efficiency of Coterra Energy in managing its working capital, highlighting the importance of closely monitoring and improving working capital management strategies.