Devon Energy Corporation (DVN)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 564,000 | 451,000 | 428,000 | 689,000 | 3,120,000 |
| Payables | US$ in thousands | 2,238,000 | 1,982,000 | 2,365,000 | 1,956,000 | 904,000 |
| Payables turnover | 0.25 | 0.23 | 0.18 | 0.35 | 3.45 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $564,000K ÷ $2,238,000K
= 0.25
The payables turnover for Devon Energy Corporation has shown a significant decrease over the years, dropping from 3.45 in December 31, 2020, to 0.35 in December 31, 2021, further declining to 0.18 in December 31, 2022, and slightly improving to 0.23 in December 31, 2023, and 0.25 in December 31, 2024. This trend indicates that the company is taking longer to pay its suppliers and vendors, which may signal potential liquidity issues or changes in its payment policies. Further investigation into the company's accounts payable management and cash flow is warranted to understand the reasons behind this downward trend in payables turnover.
Peer comparison
Dec 31, 2024