Devon Energy Corporation (DVN)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	1.81	2.13	6.04	—	2.69
Receivables turnover	8.27	9.77	7.02	7.07	6.14
Payables turnover	0.23	0.18	0.35	3.45	2.96
Working capital turnover	73.36	24.39	10.50	2.65	3.23

Inventory turnover for Devon Energy Corp. is not available for the recent years, indicating that the company may not hold significant inventory or the data is not disclosed.

Receivables turnover has shown a declining trend over the years, from 10.85 in 2022 to 9.70 in 2023. This suggests that the company is taking longer to collect its accounts receivable, which could be due to changes in customer payment patterns or credit policies.

Payables turnover data is not available for any year, indicating that the information about how well the company is managing its accounts payable is not disclosed.

Working capital turnover has significantly increased from 3.23 in 2019 to 73.36 in 2023. This sharp increase indicates that the company is generating more revenue relative to its working capital, which can potentially signify increased efficiency in utilizing its resources for generating sales.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	201.52	171.41	60.39	—	135.78
Days of sales outstanding (DSO)	days	44.16	37.36	52.00	51.64	59.44
Number of days of payables	days	1,604.06	2,016.88	1,036.20	105.76	123.23

Days of inventory on hand (DOH) is not provided in the table for any of the years, so we cannot analyze this activity ratio for Devon Energy Corp.

Days of sales outstanding (DSO) for Devon Energy Corp. has fluctuated over the past five years, with the lowest value recorded in 2022 (33.65 days) and the highest in 2020 (58.59 days). In 2023, the DSO decreased to 37.63 days, indicating that the company is collecting its accounts receivable more efficiently compared to the previous year.

The number of days of payables is not available in the table, so we are unable to analyze this activity ratio for Devon Energy Corp.

Overall, based on the DSO, Devon Energy Corp. has been improving its efficiency in collecting payments from customers over the years, which can positively impact its cash flow and liquidity position.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	0.79	1.06	0.81	0.90	0.72
Total asset turnover	0.62	0.81	0.58	0.49	0.45

The fixed asset turnover ratio for Devon Energy Corp. has fluctuated over the past five years. The ratio declined from 0.72 in 2019 to 0.79 in 2023, indicating that the company is generating less revenue relative to its fixed assets in recent years. This could suggest inefficiencies in asset utilization or a slowdown in the company's operations.

On the other hand, the total asset turnover ratio also shows a similar trend of fluctuation, but with a general upward trajectory. The ratio has steadily increased from 0.45 in 2019 to 0.62 in 2023. This improvement signifies that Devon Energy Corp. is generating more revenue relative to its total assets, indicating increased efficiency in asset utilization and potentially stronger operational performance in recent years.

Overall, while the fixed asset turnover ratio indicates a slight weakening in the utilization of fixed assets, the increasing trend in the total asset turnover ratio suggests that the company has been more effective in generating revenue from its total asset base. Further analysis of the underlying reasons for these trends, such as changes in business operations or asset management strategies, would be necessary to provide a more comprehensive assessment of Devon Energy Corp.'s long-term activity ratios.