Devon Energy Corporation (DVN)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		0.25	0.23	0.18	0.35	3.45
Number of days of payables	days	1,448.35	1,604.06	2,016.88	1,036.20	105.76

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.25
= 1,448.35

The number of days of payables for Devon Energy Corporation has exhibited significant fluctuations over the past five years. As of December 31, 2020, the company had an average payment period of 105.76 days, suggesting a relatively efficient management of accounts payable. However, by the end of 2021, the number of days of payables had surged to 1,036.20 days, indicating a substantial delay in settling obligations to suppliers. This sudden increase may raise concerns about the company's liquidity and ability to manage working capital effectively.

In the subsequent years, the number of days of payables continued to remain elevated, with figures of 2,016.88 days as of December 31, 2022, 1,604.06 days as of December 31, 2023, and 1,448.35 days as of December 31, 2024. These extended payment periods suggest a persistent pattern of delayed payments to vendors, which could potentially strain relationships with suppliers and impact the company's access to credit terms in the future.

Overall, the trend in Devon Energy Corporation's number of days of payables highlights a concerning shift towards longer payment cycles, indicating a need for closer monitoring of working capital management and cash flow dynamics to ensure sustainability and financial stability.