Devon Energy Corporation (DVN)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	451,000	428,000	689,000	3,120,000	3,430,000
Payables	US$ in thousands	1,982,000	2,365,000	1,956,000	904,000	1,158,000
Payables turnover		0.23	0.18	0.35	3.45	2.96

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $451,000K ÷ $1,982,000K
= 0.23

The payables turnover ratio for Devon Energy Corp. has consistently been reported as 0.00 for the past five years. This indicates that the company is not effectively managing its accounts payable. A low or zero payables turnover ratio may suggest that Devon Energy is taking longer to pay its suppliers, which could strain supplier relationships or indicate potential liquidity issues. The company may want to investigate the reasons behind this low ratio and consider implementing strategies to improve its payables management efficiency.